Parkview Gardens [2005] QBCCMCmr 339 (21 June 2005)

TAKE NOTICE that pursuant to an application made under the abovementioned Act by

I hereby order that Michael Johnston of Stewart Silver King & Burns (appointee) is authorised to call, hold and chair an annual general meeting (meeting) of the body corporate for Parkview Gardens.

I further order that this authorisation:

1. Commences on the date of this order and ceases in three months from the date of this order. However, the authorisation will cease immediately upon the appointment of a committee for Parkview Gardens if that occurs earlier;
2. Allows the appointee to perform obligations of the committee or any member of the committee in respect of the calling, holding and chairing of the meeting. However, expenditure incurred on behalf of the body corporate in calling and holding this meeting must be limited to the costs of photocopying and posting meeting material; and
3. Is subject to the appointee, as far as practicable, following the procedures in the Accommodation Module governing giving notice for and holding an annual general meeting. In particular, a notice requesting nominations for committee positions and submission of motions for consideration at the meeting must give owners at least three weeks to submit their nominations and motions. However, the giving of notices and the holding of the general meeting need not coincide with the end of financial year date of the body corporate.

I further order that the appointee is authorised to engage in any spending, within the committee limit, that cannot reasonably be delayed for authorisation by owners in general meeting.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0266-2005

"Parkview Gardens" CTS 24525

Parkview Gardens Community Titles Scheme (Parkview Gardens) is a 50 lot scheme under the Body Corporate and Community Management Act (Act) and the Act’s Accommodation Module Regulation (Accommodation Module).

Michael Pittam, owner of lot 40 (applicant) has lodged this application seeking the appointment. The grounds state that the current committee consists of three persons that have since sold or are unable to be contacted. It is submitted that the scheme is without an executive decision maker and there are are number of invoices requiring authorisation and urgent issues requiring actioning. It is also submitted that the annual general meeting is due to be held but there is no committee to approve the proposed budgets or call the meeting.

The submissions indicate that the scheme is not currently operating in accordance with the legislation. The legislation provides for the election of a committee to represent owners and for the replacement of committee members upon vacancies arising (Act 98-100, Accommodation Module 8-23). Further, annual general meetings must be held within 3 months after the end of each of the scheme’s financial years (Accommodation Module, 58). Notices requesting nominations for committee positions and motions for consideration at the annual general meeting must be requested from owners by a notice given three to six weeks before the end of financial year (Accommodation Module 14, 39).

In this case the applicant is firstly seeking an order authorising Michael Johnston of Stewart Silver King & Burns (appointee) to call an annual general meeting that is due to be called. Secondly, submissions have been made to the effect that some urgent expenditure will be necessary prior to the meeting.

Firstly, I am satisfied that it is appropriate to grant an order authorising the appointee to call, hold and chair the meeting. The appointee is entitled to perform obligations of the committee or any committee member in this respect and those actions will be taken to be actions done by the committee or member (Act, 278). In calling this meeting, the appointee should follow the legislative procedures as far as practicable. Further, I will order that the appointee is entitled to any photocopying and postage costs in calling the meeting.

The authorisation is limited to allowing the appointee to call the meeting within a three month period. The authorisation will also immediately cease as soon as owners have elected a committee as required by the legislation (Act, 98-101). If owners want the continuing assistance of Stewart Silver King & Burns throughout the year then a motion proposing appointment of that company to provide administrative assistance as body corporate manager will need to be put to the meeting and adopted by owners.

Secondly, there are submissions to the effect that some spending is urgently required prior to the annual general meeting. Ideally, spending decisions should be delayed for consideration of owners in general meeting. However, the submissions indicate that some matters need to be dealt with immediately and that there is no functioning committee to deal with those matters. Enquiries have indicated that bills for power supply have not been paid and the power may shortly be cut off. It is also submitted that the body corporate’s insurance policy will shortly expire. There appears to be insufficient time to seek submissions from all owners on these issues. I will therefore make an interim order authorising the appointee to engage in any spending, within the committee limit, that cannot reasonably be delayed for authorisation by owners in general meeting.

A further problem may be that urgent spending is required that exceeds the relevant limit for committee spending. For example, renewal of insurance for a period of one year may exceed this limit. To keep the amount below the committee spending limit the appointee may need to only renew the insurance for a period of three months and place a motion for renewal for a longer period before owners in general meeting. If any other urgent spending is required in excess of the committee spending limit then a further application can be lodged.

Number of Scheme:	24525
Name of Scheme:	Parkview Gardens
Address of Scheme:	10 Geeba Street SLACKS CREEK QLD 4127

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Parkview Gardens [2005] QBCCMCmr 339 (21 June 2005)