Cairns Golden Sands [2009] QBCCMCmr 356 (17 September 2009)

Last Updated: 9 October 2009

REFERENCE: 0873-2009

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	17890
Name of Scheme:	Cairns Golden Sands
Address of Scheme:	12-14 Deauville Close YORKEYS KNOB QLD 4870

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

the Body Corporate for Cairns Golden Sands

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 Cairns Golden Sands Community Titles Scheme 17890 shall be 30 June 2010, in place of the previous financial year end date. I further order that, thereafter, each successive financial year for the Body Corporate for Cairns Golden Sands Community Titles Scheme 17890 shall commence on 1 July and end on 30 June.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0873-2009

“Cairns Golden Sands” CTS 17890

Cairns Golden Sands Community Titles Scheme 17890 (Cairns Golden Sands) consists of 32 lots and common property. The scheme’s community management statement indicates the Body Corporate and Community Management (Accommodation Module) Regulation 2008 (Accommodation 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 Cairns Golden Sands (applicant) on 16 September 2009, and seeks the following declaratory order:

Change of financial year end date from 31 October to 30 June effective from 30/06/2010.

The application is made pursuant to Motion 8 at an extraordinary general meeting of the Body Corporate held on 12 August 2009. The resolution agreed to change the end of financial year to 30 June, with nine votes in favour, one 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 October, meaning that current the Annual General Meeting (AGM) must be held by 31 January each year. It appears that the desire to change this date is to enable more owners to attend general meetings. It is not uncommon problem for schemes whose AGMs fall due in December or January to experience difficulty with attendance at the AGM.

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 Junein 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