Island Views [2010] QBCCMCmr 289 (29 June 2010)

Last Updated: 24 August 2010

REFERENCE: 0595-2010

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	37597
Name of Scheme:	Island Views
Address of Scheme:	79 - 83 Williams Parade, Palm Cove

TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Body Corporate for Island Views

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 Island Views Community Titles Scheme 37597 shall be 31 August 2010, in place of the previous financial year end date. I further order that, thereafter, each successive financial year for the Body Corporate for Island Views Community Titles Scheme 37597 shall commence on 1 September and end on 31 August.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0595-2010

“Island Views” CTS 37597

Island Views community titles scheme 37597 (Island Views) consists of 16 lots and common property. The scheme’s community management statement (CMS) 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 Island Views (applicant) on 24 June 2010, and seeks the following declaratory order:

1. That the next financial year end date of the body corporate for Island Views CTS 37597 shall be the 31 August 2010 in place of the previous financial year end date.

2. That each successive financial year for the body corporate for Island Views CTS 37597 shall commence on the 1 September and terminate on the last day of August.

The application is made pursuant to Resolution 29 at an Annual General Meeting (AGM) of the Body Corporate on 4 March 2010, which passed with eight votes in favour and nil against.

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 CMS, or the exercise of rights or powers, or the performance of duties, under the Act or the CMS. 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 indicates that the current financial year for the scheme ends on 30 September, meaning that AGMs are required to be held by the end of December. This timeframe creates difficulties in achieving a quorum due to Christmas and holidays. The application suggests that by holding the AGM by 30 November each year these difficulties will be avoided.

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 August 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