Keona Grove (Houses) [2010] QBCCMCmr 46 (5 February 2010)

Last Updated: 23 March 2010

REFERENCE: 0101-2010

ORDER OF AN ADJUDICATOR

MADE UNDER PART 9 OF CHAPTER 6

BODY CORPORATE AND COMMUNITY MANAGEMENT ACT 1997

Number of Scheme:	30789
Name of Scheme:	Keona Grove (Houses)
Address of Scheme:	149 Keona Road McDOWALL QLD 4053

TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Body Corporate for Keona Grove (Houses)

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 Keona Grove (Houses) Community Titles Scheme 30789 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 Keona Grove (Houses) Community Titles Scheme 30789 shall commence on 1 September and end on 31 August.

STATEMENT OF ADJUDICATOR’S REASONS FOR DECISION - REF 0101-2010

“Keona Grove (Houses)” CTS 30789

Keona Grove (Houses) Community Titles Scheme 30789 (Keona Grove (Houses)) consists of 14 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.

CORRECTION OF ORDER

The purpose of this order is to replace an earlier order made 29 January 2010 to correct a typographical error in the second order which should properly refer to the new financial year commencing on 1 September rather than on 1 October.

APPLICATION

This application was made under the Body Corporate and Community Management Act 1997 (Act) by the Body Corporate for Keona Grove (Houses) (applicant) on 28 January 2010, and seeks the following declaratory order:

An order pursuant to section 283 of The Body Corporate and Community Management Act 1997 changing the body corporate's financial year end date to 31 August in each year.

The application is made pursuant to Motion 4 at the Annual General Meeting (AGM) of the Body Corporate adjourned until 25 January 2010, which passed with three votes for 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 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 for Keona Grove (Houses) is 31 October. Keona Grove (Houses) is part of a layered arrangment, with the financial year end for the principal scheme and the other subsiduary scheme both 31 August. Accordingly the application says that the alignment of the financial year end dates for all three schemes will assist in managing the financial arrangements for the schemes.

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