Snipe Court [2006] QBCCMCmr 25 (18 January 2006)

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

I hereby order that, two weeks from the date of this order, the appointment of Ric Culpitt as administrator of the body corporate for Snipe Court will cease and all the powers, functions and responsibilities of the body corporate committee and its executive members will vest in two persons being, firstly, the owner or nominee of lot 1 and secondly, the owner or nominee of lot 2.

I further order that these powers, functions and responsibilities will vest in a nominee of the owner rather than the owner themselves if the owner provides written notice of a person (nominee) who is to serve on the committee in place of the owner, that nominee being a member of the owner’s family or acting under a power of attorney from the owner. This written notice is to be in the form of a letter signed by both the owner and the nominee and posted to or placed in the letterbox of the other owner. The letter must include the name of the nominee and their postal address within Australia.

I further order that the two persons who will form the committee and exercise its responsibilities as a result of this order (committee members) will jointly hold the positions of the executive members of the committee unless they agree otherwise. Further, unless they agree otherwise, either of those committee members will be able to separately call a committee meeting by issuing a notice to the other committee member stating when and where the meeting is to be held.

I further order that if no committee meeting for the body corporate of Snipe Court has been held and attended by at least one of the committee members between now and the end of February 2006, then this order is to operate as deeming a committee meeting to have been called for 9:00am on Monday 13 March 2006 on the council strip in front of the scheme land. The agenda for this committee meeting is deemed to include the preparation of proposed budgets for adoption by the body corporate at its annual general meeting and the preparation of an agenda for the annual general meeting as well as any other matters the committee members wish to raise. I further order that, should it be necessary, the time in which the body corporate for Snipe Court is required to hold its annual general meeting is extended to the extent necessary to allow for preparation of the meeting material by the committee members and the giving of at least 21 days’ notice of the meeting to both owners.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0886-2005

"Snipe Court" CTS 7704

Snipe Court Community Titles Scheme (Snipe Court) is a 2 lot scheme under the Body Corporate and Community Management Act 1997 (Act) and the Act’s Standard Module Regulation (Standard Module). The scheme is designed for residential purposes.

On 14 December 2005 the administrator lodged an application on behalf of the body corporate seeking that the above appointment be terminated. The grounds of the application include statements by the administrator to the effect that he has had two heart attacks and does not wish to continue with the appointment having concluded that it is not practical for him to continue with the appointment. The administrator says he has not made any charges for any services provided by him and requests an order terminating his appointment.

Both owners have been given an opportunity to provide submissions. Adele Emerson, the owner of lot 1, has provided a submission that is highly critical of the initial appointment of the administrator, the actions of the administrator, the reasons given by the administrator for seeking to be relieved from his appointment, and the system in general. This submission opposes the initial appointment of the administrator and says that the body corporate for Snipe Court was again rendered completely inoperable with the inaction of the administrator. Ultimately, Adele Emerson submits that she cannot see any advantages or disadvantages concerning allowing or denying termination of the administrator but stresses that Snipe Court must not be left inoperable.

Gertrud Sobania, the owner of lot 2, has made submissions to the effect that Ric Culpitt appears to be forthright, honest and pleasant to deal with and that she wishes him to carry on with the one year appointment as administrator. Alternatively, she suggests that another administrator may be selected to carry on with the appointment.

One owner wishes Ric Culpitt to continue as administrator and the other owner, while critical of Ric Culpitt, states that she cannot see any advantages or disadvantages concerning allowing or denying termination of the administration.

However, Ric Culpitt himself has said that he wishes for the administration to be terminated. In this respect he cites health concerns and says that he no longer wishes to act as administrator. Further, despite obviously investing some time and effort in endeavouring to carry out his appointment, he as stated that he has made no charge for any service provided and does not intend to do so.

In these circumstances I do not consider I can refuse Ric Culpitt’s request to be excused from any further administration of the scheme. Further, while one of the owners suggests that a new administrator be appointed, I would need the name of the proposed administrator and their consent to appointment before proceeding to make such an order. Given the past experiences it may also be prudent for the owners to meet with the proposed administrator first to enable them to determine if the proposed administrator appears suitable and is willing to undertake the necessary duties. I will therefore simply make an order terminating the administration.

It is very important that the body corporate for Snipe Court does fulfil its legal obligations and is not left inoperable by the termination of the administration. Both owners should therefore consider the best way for matters to proceed from here and endeavour to adopt strategies that allow for the smooth conduct of the body corporate’s affairs.

For example, if both owners do not wish to physically meet together then they should both consider appointing representatives who are willing to meet as a committee to discuss the body corporate’s affairs. In this respect I note that some correspondence provided with the submissions suggests that Sir Michal Leeman-Smith holds a valid power of attorney from the owner of lot 2.

Further, if formalities of paperwork and administration are causing disagreements then the owners may wish to agree on the appointment of a neutral body corporate manager to provide assistance in the form of drafting agendas for meetings, providing notices of meetings, providing a neutral place for the owners or their representatives to meet, providing arrangements for the collection of levies and similar administrative matters.

Provisions of the legislation relevant to the formation and operation of a committee include provisions to the effect that:

To assist in self management of the scheme following the conclusion of the administration I will make orders to facilitate each owner delivering notice of any nominee for committee membership and delivering a notice for the calling of a committee meeting. I will provide a period of two weeks in which both owners have an opportunity to provide a written letter to the other owner nominating the name and postal address of a person who is to serve on the committee in their place. Provided this nominee is a member of the owner’s family or acting under a power of attorney from the owner then the nominee will be a committee member. If no written notice of a valid nominee is given then the owner will be the committee member.

I will further order that after two weeks the two committee members for Snipe Court may agree on the calling of a committee meeting or, in default of agreement, they may both call committee meetings by notice in writing to the postal address of the other committee member. Provided at least one owner attends each committee meeting then both committee meetings will have a valid quorum. If no quorum has been met at a committee meeting by the end of February then I will order that a committee meeting for the body corporate for Snipe Court be held at 9.00am on Monday 13 March 2006 on the council strip immediately in front of the scheme. I will provide that the agenda should include certain matters in preparation for the calling of the next annual general meeting and extend the time for the calling of that annual general meeting if necessary.

This office can be contacted if either of the owners would like information on legislative requirements. If further disputes do arise then additional adjudication can be sought. Finally, if either of the owners considers that a further period of administration is necessary then they can apply for the further appointment of an administrator. As stated above, it may be of assistance if owners meet with the proposed administrator first to enable them to determine if the proposed administrator appears suitable and is willing to undertake the necessary duties.

Number of Scheme:	7704
Name of Scheme:	Snipe Court
Address of Scheme:	17 Snipe Court MIAMI QLD 4220

•	the appointment of the administrator is for an initial term of one year and thereafter monthly but can be terminated by order of an adjudicator. After the expiry of one year, the appointment can be terminated by either the body corporate or the administrator on one months’ written notice;
•	the administrator is granted the power to levy contributions against the owners of lots to meet the costs of complying with its obligations and the costs of the administration;
•	the grant of powers, functions and responsibilities to the administrator pursuant to this order is exclusive to the administrator and not capable of delegation; and
•	the administrator is entitled to payment of $1,000 per year and, in addition, is entitled to payment for any disbursements and additional services reasonably and properly incurred as described in the schedule to Teys’ Strata Management Agreement that was provided with the application.

Queensland Body Corporate and Community Management Commissioner - Adjudicators Orders

Snipe Court [2006] QBCCMCmr 25 (18 January 2006)