La Porte D'or [2006] QBCCMCmr 502 (5 October 2006)

Last Updated: 19 December 2006

REFERENCE: 0782-2006

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	12681
Name of Scheme:	La Porte D’or
Address of Scheme:	3422 Surfers Paradise Boulevard SURFERS PARADISE QLD 4217

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

the Body Corporate for La Porte D’Or

I hereby order that for the purposes of the Body Corporate and Community Management Act 1997 ("the Act") and pursuant to section 283 of the Act, the next financial year end date of the Body Corporate for La Porte D’Or Community Titles Scheme 12681 shall be 30 June 2007, in place of the previous financial year end date. I further order that thereafter, each successive financial year for the Body Corporate for La Porte D’Or Community Titles Scheme 12681, shall commence on 1 July and terminate on 30 June.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0782-2006

"La Porte D’or" CTS 12681

La Porte D’Or community titles scheme (La Porte D’Or) consists of 181 lots and common property. The scheme’s community management statement indicates the Body Corporate and Community Management (Standard Module) Regulation 1997 (Standard Module) applies to the scheme.

CORRECTION OF ORDER

The purpose of this order is to replace an earlier order made 28 September 2006 to correct, under the ‘slip rule’, a typographical error in a date contained in the order.

APPLICATION

This application was made under the Body Corporate and Community Management Act 1997 (Act) by the Body Corporate for La Porte D’Or on 25 September 2006, and seeks the following declaratory order:

That the Body Corporate's Financial Year End be amended from 30 September to 30 June, with effect from 30 June 2007.

The application is accompanied by the minutes of an extraordinary general meeting on 27 July 2006 which passed a special resolution to change the end of the financial year to 30 June, effective 30 June 2007.

JURISDICTION

I am satisfied that this is a matter which falls within the dispute resolution provisions of the legislation (see sections 227, 228, 276 and Schedule 5 of the Act).

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 claimed or anticipated contravention of the Act or the community management statement, or the exercise of rights or powers, or the performance of duties, under the Act or the community management statement. An adjudicator's order may contain ancillary and consequential provisions the adjudicator considers necessary or appropriate (section 284(1)).

Section 283 of the Act specifically provides that, with the consent of the body corporate, the order of the adjudicator may include a change of the body corporate’s financial year and of the dates when later financial years begin.

DETERMINATION

The current financial year ends on 30 September and so the annual general meeting (AGM) is required to be held within three months of that date – by 30 December. The application states that this end of financial year is inconvenient because the AGM is held in December which is difficult for owners as it is so close to Christmas. It is not necessary for the Body Corporate to wait until the end of the three months period to hold their AGM but, given the process to be followed (including holding committee meetings, conducting audits, preparing the agenda and allowing for the 21 day notice period), in practice this is not uncommon. By changing the financial year, the AGM can be held at a time that is more convenient to the majority of lot owners and committee members.

In the circumstances, I am satisfied that the Body Corporate has properly consented to the proposed change of the Body Corporate’s financial year and that it is appropriate to make an order changing the financial year end date to 30 June in each year.

This order results in the Body Corporate having a one-off 9 month financial year. The Body Corporate should be cognisant of this fact when preparing budgets for the 2006 AGM.