Il Fiore [2006] QBCCMCmr 161 (30 March 2006)

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

I hereby order that Mr. Bob Manson of Australian Unit Administration 6 / 2431 Gold Coast Highway Mermaid Beach, 4217, is appointed as Administrator to call, hold, and chair an annual general meeting of the Il Fiore Body Corporate within 3 months from the date of this order. 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 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.

I further order that the owners of both lots will be entitled to submit motions to the Administrator for inclusion on the agenda of the notice of meeting, and provided the motions are received by the Administrator by the due date, the motions will be included by the Administrator on the agenda of the meeting.

I further order that the Administrator shall prepare an agenda for the meeting, including the matters set out in section 45 of the Body Corporate and Community Management (Standard Module) Regulation 1997, and shall issue a notice of the meeting.

I further order that 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 and, except as provided in this order, the meeting must be called and held in accordance with the Act and the Standard Module Regulation.

I further order that for the purposes of determining the future financial years of the Body Corporate, the end of the financial year shall be the last day of the month immediately preceding the month in which the anniversary of the meeting authorised by this order falls.

I further order that the Administrator shall allow body corporate members reasonable access to all body corporate records held by him.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0059-2006

"Il Fiore" CTS 15632

The applicant is the owners of lot 2 in the scheme and seeks an order that Mr. Bob Manson of Australian Unit Administration 6 / 2431 Gold Coast Highway Mermaid Beach, 4217, be appointed as Administrator to call, hold, and chair an annual general meeting of the Il Fiore Body Corporate.

The purpose of such an order is to re-establish the body corporate and place it on a proper legal footing. The applicant states that the body corporate has not held a general meeting for some six years.

Statutory Obligations of the Body Corporate.

The statutory requirements regarding the holding of a general meeting are set out in Part 4 of the Standard Regulation Module which provides that a meeting must be held each year after notice of the meeting is given to all lot owners. The notice must state the time and place of the proposed meeting and each member should also be provided with an agenda for the meeting, a proxy form and a voting paper.

The body corporate must also prepare an administrative and sinking fund budget each financial year. The budgets forecast anticipated expenditure and form the basis for setting the annual contributions payable by the owner of each lot, to the administrative and sinking funds.

Submissions

The owner of the other lot in the scheme advised that she:

Jurisdiction

Section 276(1) of the Act provides that an adjudicator may make an order that is just and equitable in the circumstances (including a declaratory order) to resolve a dispute, in the context of a community titles scheme, about-

(a) a claimed or anticipated contravention of the Act or the community management statement; or

(b) the exercise of rights or powers, or the performance of duties, under the Act or the community management statement; or

(i) the engagement of a person as a body corporate manager or service contractor for a community titles scheme; or

(ii) the authorisation of a person as a letting agent for a community titles scheme.

An order may require a person to act, or prohibit a person from acting, in a way stated in the order (section 276(2)). An adjudicator's order may contain ancillary and consequential provisions the adjudicator considers necessary or appropriate (section 284(1)). Specifically, without limiting the power of an adjudicator to make an order under section 276(1), an adjudicator may make an order
... appointing an administrator, and authorising the administrator to perform--
(a) obligations of the body corporate, its committee, or a member of the committee under this Act or the community management statement; or
(b) obligations of the body corporate under another Act.

Section 301 of the Act, headed Appointment of Administrator provides –

301 Appointment of administrator
(1) This section applies if an order is made under this chapter appointing an administrator.
(2) The administrator has the powers given to the administrator under the order.
(3) Without limiting subsection (2), the power may include power to levy a special contribution against the owners of lots included in a community titles scheme to meet the cost of complying with obligations to which the order relates and the costs of the administration.
(4) The order may--
(a) withdraw all or particular stated powers from the body corporate, a body corporate manager to whom a power has been given under section 119 or 120, or stated officers of the body corporate
until the administrator has taken the necessary action to secure compliance with the obligations; and
(b) require officers of the body corporate or a body corporate manager mentioned in paragraph (a) to take stated action to help perform the work the administrator is required to perform; and
(c) fix the administrator’s remuneration.
(5) The administrator’s remuneration is to be paid out of the funds of the body corporate.
(6) This section does not apply to the enforcement of a monetary obligation of the body corporate arising under another Act unless it is an enforceable money order.

Determination

Where a body corporate fails to regularly hold its required annual general meetings and fails to meet its statutory obligations, 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 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.

In the circumstances, I am satisfied that it is reasonable and necessary for me to make an order appointing Mr. Bob Manson of Australian Unit Administration 6 / 2431 Gold Coast Highway Mermaid Beach as Administrator to call, hold, and chair an annual general meeting of the Il Fiore Body Corporate. While I note the objection by the owner of lot 1 to the payment of the nominated fee, I believe it is necessary for a professional body corporate manager to be appointed to re-establish the body corporate on a proper legal footing.

Number of Scheme:	15632
Name of Scheme:	Il Fiore
Address of Scheme:	27 Blondell Avenue SURFERS PARADISE QLD 4217

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Il Fiore [2006] QBCCMCmr 161 (30 March 2006)