Emerald Lakes [2006] QBCCMCmr 595 (14 November 2006)

Last Updated: 19 December 2006

REFERENCE: 0931-2006

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	31623
Name of Scheme:	Emerald Lakes
Address of Scheme:	Birmingham Road CARRARA QLD 4211

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

The Body Corporate for the scheme

I hereby order that for the purposes of the Body Corporate and Community Management Act 1997 and pursuant to section 283, the next financial year end date of the body corporate for Emerald Lakes shall be 28th February 2007 in place of the previous financial year end date. I further order that each successive financial year for the body corporate for Emerald Lakes shall commence on 1st March and terminate on the last day of February.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0931-2006

"Emerald Lakes" CTS 31623

APPLICATION

The Applicant is the body corporate for Emerald Lakes community titles scheme, which is a principal body corporate of a layered scheme. The Applicant requests by application dated 3^rd November 2006, that the end of financial year be changed to the 28th February.


JURISDICTION

Section 276(1) of the Body Corporate and Community Management Act 1997 (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 the exercise of rights or powers, or the performance of duties, under the Act or the community management statement.

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)).

Section 283 of the Act 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.


SUBMISSION

The grounds state that the body corporate on 31^st October 2006 passed a resolution at an annual general meeting that the financial year end date be moved to 28^th February, the reason being to facilitate financial reporting in relation to the principal body corporate so that the principal body corporate has a financial year end one month before the several subsidiary schemes.

DETERMINATION

In the circumstances, I am satisfied that the body corporate has consented to the proposed change. Further, the change appears to be reasonable and appropriate. However, I note that whilst the request is to change the financial year’s end to 28^th February, there will be leap years when the last day of February will be 29^th February, and the scheme’s financial year will, to that extent, be flexible.

Section 283 couches the order which can be made in the terms of the commencement of future financial years. Leap years can be accommodated by stating that the body corporate’s financial year will in future commence on 1^st March.

Thus the current financial year end will be 28^th February 2007, and future financial years will commence on 1^st March.