Brookwater Vista 2 Home Owners Club [2009] QBCCMCmr 288 (10 August 2009)

Last Updated: 17 September 2009

REFERENCE: 0742-2009

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	36328
Name of Scheme:	Brookwater Vista 2 Home Owners Club
Address of Scheme:	Birchwood Crescent BROOKWATER QLD 4300

TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Body Corporate for Brookwater Vista 2 Owners Club

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 Brookwater Vista 2 Owners Club Community Titles Scheme 36328 shall be 31 May 2010, in place of the previous financial year end date. I further order that, thereafter, each successive financial year for the Body Corporate for Brookwater Vista 2 Owners Club Community Titles Scheme shall commence on 1 June and end on 31 May.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0742-2009

“Brookwater Vista 2 Home Owners Club” CTS 36328

Brookwater Vista 2 Owners Club Community Titles Scheme 36328 shall (Brookwater Vista 2 Owners Club) consists of 24 lots and common property. The scheme’s community management statement indicates the Body Corporate and Community Management (Standard Module) Regulation 2008 (Standard Module) applies to the scheme.

APPLICATION

This application was made under the Body Corporate and Community Management Act 1997 (Act) by the Body Corporate for Brookwater Vista 2 Owners Club (applicant) on 7 August 2009, and seeks the following declaratory order:

That the Body Corporates financial year end be changed to 31 May so that it is in line with other Subsidiary Body Corporate’s at Brookwater.

The application is made pursuant to Motion 8 at the Annual General Meeting (AGM) of the Body Corporate, reconvened on 17 June 2009. The resolution agreed to change the end of financial year to 31 May, with six votes in favour, none against and no abstentions.

JURISDICTION

I am satisfied that this is a matter which falls within the legislative dispute resolution provisions.[1]

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 a body corporate’s financial year and of the dates when later financial years will begin.

DETERMINATION

The application says that the current financial year end date of 31 March. The scheme is part of a layered scheme and the applicant say most (and soon all) other subsidiary schemes have a financial year end of 31 May, enabling them to follow the financial flow of the principal scheme.

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 31 may in each year.

This order results in the Body Corporate having an abnormal length financial year for one year. The Body Corporate should be cognisant of this fact when managing its financial affairs.

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[1] See sections 227, 228, 276 and Schedule 5 of the Act