Serenity Shores, Oyster Cove [2010] QBCCMCmr 229 (25 May 2010)

Last Updated: 9 June 2010

REFERENCE: 0487-2010

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	32102
Name of Scheme:	Serenity Shores, Oyster Cove
Address of Scheme:	Serenity Boulevard OYSTER COVE QLD 4212

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

The Body Corporate for Serenity Shores, Oyster Cove

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 Serenity Shores, Oyster Cove Community Titles Scheme 32102 shall be 30 June 2011, in place of the previous financial year end date. I further order that, thereafter, each successive financial year for the Body Corporate for Serenity Shores, Oyster Cove Community Titles Scheme 32102 shall commence on 1 July and end on 30 June.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0487-2010

“Serenity Shores, Oyster Cove” CTS 32102

Serenity Shores, Oyster Cove Community Titles Scheme 32102 (Serenity Shores, Oyster Cove) consists of 54 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 Serenity Shores, Oyster Cove (applicant) on 24 May 2010, and seeks the following declaratory order:

That the Body Corporate change its Financial Year end date from 31 December to the 30 June so that the Body Corporate can more accurately prepare its budgets in line with the Principal Body Corporate.

The application is made pursuant to Motion 14 of the Annual General Meeting (AGM) of the Body Corporate dated 31 March 2010. The resolution agreed to change the end of financial year to 30 June, with two votes in favour of the motion, no votes against the motion and one abstention.

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 December means that the AGM must be held by 31 March each year. The application says a change of financial year is sought to bring the Body Corporate’s end of financial year date in line with the Principal Body Corporate’s end of financial year date.

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 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