Clifton Mansions [2004] QBCCMCmr 659 (22 December 2004)

TAKE NOTICE that pursuant to an application made under the abovementioned Act by Martin Cooper and Dianne Maddison (the Owners of Lot 2):

I hereby order that:

1. Trevor Matthews of R.Matthews & Son Pty Ltd trading as Matthews Body Corporate Management, 678 Ipswich Road Annerley, Queensland is appointed as Administrator to call, hold and chair an annual general meeting ("the meeting) of the "Clifton Mansions" Body Corporate in accordance with this order and within 3 months from the date of this order.

2. The Administrator shall hold the appointment for the period beginning on the date of this order, until the close of the meeting ordered to be held.

I further order that for the purposes of the Body Corporate and Community Management Act 1997 (the Act), the meeting shall be deemed to be the first annual general meeting of the Body Corporate.

I further order that-

1. For the purposes of calling and chairing the meeting, the Administrator shall have all the powers of chairperson, secretary and treasurer of the Body Corporate and of the committee, with the exception of the following powers-
• To further delegate any of those powers to another person; and
• To incur any expenditure apart from that reasonably necessary for the calling and holding of the meeting, and apart from expenses that must necessarily be met and are capable of being authorised and incurred by a committee under the legislation.

2. The Administrator shall prepare an agenda for the meeting, including but not necessarily limited to, the matters set out in section 62(3) of the Body Corporate and Community Management (Standard Module) Regulation 1997 (the Standard Module).

3. The meeting may also consider any other matter before it, provided that the owners of both lots included in the scheme are represented at the meeting either personally or by proxy.

4. The Administrator shall issue a notice of the meeting in accordance with section 42 of the Standard Module.

5. The meeting must be held at least 14 days after notice of the meeting is given to the owners of the lots included in the scheme.

6. Except as provided in this order, the meeting must be called and held in accordance with the Act and the Standard Module.

I further order that for the purposes of the Act, the 2005 financial year of the Body Corporate will operate from 1 January 2005 to 31 December 2005, and that future financial years shall operate from 1 January to 31 December each year.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0813-2004

"Clifton Mansions" CTS 20637

Mr Martin Cooper and Ms Dianne Maddison (the registered owners of Lot 2) have made an application to the Commissioner for Body Corporate and Community Management under the Body Corporate and Community Management Act 1997 (the BCCM Act).

The Applicants state that they are seeking the following outcome, quote:

Department of Natural Resources, Mines and Energy records show that the "Clifton Mansions" community titles scheme was originally created under a group titles plan of subdivision (now known as a standard format plan) registered on 8 March 1990. The scheme land for "Clifton Mansions" consists of two lots and common property.

A standard community management statement was recorded for "Clifton Mansions" on 15 July 2000. The community management statement shows that the Act’s Body Corporate and Community Management (Standard Module) Regulation 1997 (the Standard Module) applies to the scheme.

As mentioned above, the Applicants are the registered owners of Lot 2. Mr Davin Johnson is the registered owner of Lot 1.

At the time of the establishment of "Clifton Mansions", the Building Units and Group Titles Act 1980 (the BUGT Act) applied to the scheme.

Section 29 of the BUGT Act imposed an obligation on original proprietors (usually developers) of schemes created under a building units plan or a group titles plan of subdivision, to convene the first annual general meeting of the body corporate within 3 months after the registration of the plan of subdivision. The intended purposes of first annual general meetings include reviewing body corporate insurance policies and budgets, deciding on committee positions, considering the by-laws for the body corporate, and deciding whether or not to engage a body corporate manager for the scheme.

Section 29A(1) of the BUGT Act imposed a continuing obligation on bodies corporate to convene and hold annual general meetings. The requirement continued with the commencement of the BCCM Act in 1997. Specifically, section 60 of the Standard Module of the BCCM Act provides that "an annual general meeting (other than the first annual general meeting) must be called and held within 3 months after the end of each of the scheme’s financial years".

If an original proprietor, or owner, fails to convene a first annual general meeting for a body corporate, or if a body corporate fails to regularly hold its required annual general meetings, it is necessary for an adjudicator to make an order appointing an administrator to call and hold an annual general meeting of the body corporate. The purpose of such an order is to establish (or re-establish) the body corporate on a proper legal footing, and to facilitate the body corporate conducting its affairs in accordance with the legislation, including by maintaining required records and registers.

In the supporting grounds to the application, the Applicants explain that the Body Corporate has not regularly held annual general meetings in accordance with the Act. As a result, the Applicants have sought an order authorising Mr Trevor Matthews of Matthews Body Corporate Management to convene an annual general meeting of the Body Corporate. Mr Matthews has provided his written consent to the proposed appointment, and has agreed to convene the general meeting at no cost.

The Applicants have provided me with a copy of the minutes of a special general meeting of the Body Corporate held by telephone in November 2003. Those minutes confirm that prior to that meeting, there had not been a recorded meeting since 1990. There does not appear to be any record of a formal first annual general meeting for the scheme.

In the circumstances, I am satisfied that it is reasonable and necessary for me to make an order appointing Mr Matthews as administrator for the purposes of convening a formal general meeting of the Body Corporate. I am also satisfied that it is reasonable for that meeting to be considered to be the first annual general meeting of the Body Corporate for the purposes of the Act.

I am mindful that the Owner of Lot 1 (Mr Johnson) has not had an opportunity to respond to this application prior to this order being issued, however I have proceeded with the order for a number of reasons. Firstly, I understand that in a telephone conversation with a member of this Office, the Applicants confirmed that Mr Johnson was agreeable to an order in the terms proposed. Secondly, I am satisfied that the order sought by the Applicants is reasonable and necessary. Finally, it seems to me that an order appointing an administrator for the purposes of convening one meeting, at no cost to the Body Corporate, will not have an adverse impact on Mr Johnson.

I also note that the minutes of the November 2003 telephone meeting show that the owners of both lots would prefer the Body Corporate to operate on a financial year of 1 January to 31 December each year. Section 283 of the Act allows an adjudicator, with the consent of the relevant body corporate, to issue an order setting the body corporate’s financial year. I have made an order setting the financial year as 1 January to 31 December each year.

As a final note, I would like to point out to owners that the Commissioner’s Office provides information services for people involved in Queensland’s community titles scheme. While the Information Service cannot provide legal advice, officers do provide general information about the Act and the regulation modules, primarily by responding to telephone enquiries. The Information Service has also produced a number of brochures on body corporate issues. The Information Service can be contacted on 1800 060 119 during business hours.

Number of Scheme:	20637
Name of Scheme:	Clifton Mansions
Address of Scheme:	67A Musgrave Road and Upper Clifton Terrace, Red Hill, Queensland

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Clifton Mansions [2004] QBCCMCmr 659 (22 December 2004)