Paris in Springtime [2006] QBCCMCmr 549 (26 October 2006)

Last Updated: 19 December 2006

REFERENCE: 0834-2006

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	23817
Name of Scheme:	Paris in Springtime
Address of Scheme:	15 Hawbridge Street CARSELDINE QLD 4034

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

The Body Corporate for Paris in Springtime

I hereby order that the body corporate for Paris in Springtime Community Titles scheme shall be authorised to hold its 2006 Annual General Meeting at a date no later than 30 November 2006, notwithstanding that this is outside the time limitation specified for the holding of such meeting under section 60 of the Body Corporate and Community Management (Standard Module) Regulation 1997.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0834-2006

"Paris in Springtime" CTS 23817

Application
This application has been lodged on behalf of the body corporate committee seeking a "Declaratory Order" that an extension be granted to hold the annual general meeting of the Body Corporate by 30 November 2006.

The grounds for this application are that the time period to hold the annual general meeting lapsed on 30 September 2006. The body corporate advises only that the extension is requested due the fact that the Body Corporate was unable to complete their year end financials within the required time.

I have been provided with a copy of a Flying Minute of the Committee Meeting dated 22 October 2006, where it was resolved to make this application. I have also been provided with the finalised financial statements for the year ended 30 June 2006, prepared by Colin Archer, Chartered Accountant. These were signed off as at 18 September 2006.

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

(c) a claimed or anticipated contractual matter about-

(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)).

Determination

The statutory provisions relevant to this application are as follows:

Section 60 of the Standard Module provides that an AGM must be called and held within 3 months after the end of each of the scheme’s financial years.

Time limits are placed on the period within which an AGM is required to be held for a number of reasons, including accountability and accessibility to information regarding the operation of the scheme. Consequently, it is expected that such time limits will be complied with and it should not be assumed that any request for an extension of these time periods will be acceded to except for good reason.

In this case the time to hold the meeting has already passed. I have not been given any reason as to why the financial statements have not been prepared in time. It is accepted that in practice, a great deal of reliance is placed on the Body Corporate Manager to maintain financial records.
I am aware that a period of time is required after their finalisation, to allow members of the Body Corporate to absorb the information and consider future financial planning.

Given the fact that it is already too late, I believe it is preferable for me to grant the extension sought by the applicant body corporate committee and observe that it should not be assumed that any future extension requests will be acceded to as a matter of course.

I therefore propose to order that the body corporate for Paris in Springtime Community Titles scheme shall be authorised to hold its 2006 Annual General Meeting at a date no later than 30 November 2006, notwithstanding that this is outside the time limitation specified for the holding of such meeting under section 60 of the Body Corporate and Community Management (Standard Module) Regulation 1997.