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Cathedral Place 'Duhig' [2011] QBCCMCmr 6 (6 January 2011)
Last Updated: 21 February 2011
REFERENCE: 0959-2010
ORDER OF A REFEREE
MADE UNDER PART V
BUILDING UNITS AND GROUP TITLES ACT 1980
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Name of Plan:
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Cathedral Place ‘Duhig’
|
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Address of Building or Parcel:
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41 Gotha Street, Fortitude Valley Qld 4006
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TAKE NOTICE that pursuant to an application made
under section 77(1) of the Building Units and Group Titles Act
1980 by Randall Edwards, a co-owner of lot 47
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I hereby order that the application for the following orders:
- That
for a valid Extraordinary General Meeting to be held, the Notice of that meeting
must contain all of the motions listed on the
agenda and that the voting paper
must also contain all of the motions listed on the agenda, and that all of the
above must be sent
out with the Notice of Meeting and served on owners at least
7 days prior to the meeting.
- That
should the omission of motions and the omission of those motions from the voting
paper occur, a new Notice must be sent and served
on owners at least 7 days
prior to the meeting being called.
- That
if a General Meeting of Cathedral Place “F” Duhig 106965 called for
the 21st October 2010 is held, it be ruled invalid
because the Notice of meeting did not contain all of the motions listed on the
agenda nor
did it contain a voting paper with all of the motions listed on the
agenda.
Is dismissed.
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STATEMENT OF REFEREE’S REASONS FOR DECISION -
0959-2010
“Cathedral Place ‘Duhig’” CTS
0
Application
This application is by Randall Edwards (the Applicant), a co-owner of lot 47,
seeking the following final orders:
- That
for a valid Extraordinary General Meeting to be held, the Notice of that meeting
must contain all of the motions listed on the
agenda and that the voting paper
must also contain all of the motions listed on the agenda, and that all of the
above must be sent
out with the Notice of Meeting and served on owners at least
7 days prior to the meeting.
- That
should the omission of motions and the omission of those motions from the voting
paper occur, a new Notice must be sent and served
on owners at least 7 days
prior to the meeting being called.
- That
if a General Meeting of Cathedral Place “F” Duhig 106965 called for
the 21st October 2010 is held, it be ruled invalid
because the Notice of meeting did not contain all of the motions listed on the
agenda nor
did it contain a voting paper with all of the motions listed on the
agenda.
The Applicant also sought an interim order in the following
terms:
That an order be made that the Chairperson rule out of order any
Extraordinary General Meeting of Cathedral Place “F”
Duhig 106965
held on the 21stof October (and/or adjourned on such)
because the meeting was not called according to the legislative
requirements.
On 21 October 2010, I dismissed the application for an interim order.
As stated in my reasons for the interim decision, the Applicant provided the
following information by way of background:
- On Monday, 11
October 2010, the Committee of Cathedral Place “F” Duhig 106965 met
and agreed to call an Extraordinary
General Meeting to consider a motion put
from the Cathedral Place Community Body Corporate Committee regarding the Deed
of Settlement
with Symland Pty Ltd.
- Upon receipt of
the Notice of the EGM dated 12 October 2010, on 15 October 2010, the Applicant
noted that motions put forward by Mr
Brian Fisher, an owner, were listed on the
agenda but were not included on the voting paper nor were they listed anywhere
else in
the papers sent out. The Applicant immediately emailed Grant Mifsud
(Body Corporate Manager) and Peter Zunker (Chairperson and Secretary)
making
mention of the errors and suggested that if other owners did not receive the
motions, then a new Notice must be sent and the
meeting rescheduled. Copies of
various emails between the Applicant and Mr Zunker were attached.
- It became
obvious to the Applicant from the email correspondence that Mr Zunker, as
Chairperson, intended to continue with the meeting
and he instructed Mr Mifsud
to send out the missing motions to owners.
- Even if the
missing motions were sent out on 15 October 2010 (the day the instructions were
given), owners would not receive them
prior to 18 October 2010, just 3 days
prior to the scheduled EGM. Those owners who need to post their voting papers
would then be
forced to make a decision within 2 days (assuming they live within
1 day’s postal delivery of Brisbane) to consider, gather
information, vote
and post their voting paper. Moreover, it is likely that some owners will have
already posted their voting paper
prior to the receipt of the additional
motions.
- The motion which
triggered the calling of the EGM by the Committee is to sign a Deed of
Settlement with Symland (see Notice of Meeting
papers) which will cost the
complex in excess of $250,000 and Duhig’s share of that is over $40,000.
At least one of Mr Fisher’s
motions which were submitted to the Secretary
in August 2010 is an alternative to the motion for the Deed of Settlement and
costs
nothing to owners. In fairness, Mr Fisher’s motions deserve to be
considered with the same amount of time as required by the
legislation.
As stated in my reasons for the interim decision, the Applicant
then provided the following grounds:
- Part 2, section
1(4) of Schedule 2 of BUGTA requires a Notice of General Meeting to be served on
owners at least 7 days prior to the meeting. It also
requires that such notices
set forth the business and indicate the classification of each motion (1(4)(d)).
The calling of a general
meeting without both the motions and their
classifications does not comply with the legislation.
- BUGTA does not
provide for sending out motions and new voting papers after a Notice has been
sent out. Thus, if errors have been
made in the original notice, a new notice
with all of the motions and the appropriate voting paper must be sent in order
to give
owners sufficient time to receive, enquire and vote on all of the agenda
items.
- Duhig is part of
a scheme under the MUD Act and as such appoints a representative to the CPCBC to
vote on behalf of Duhig Body Corporate.
This body has been in conflict with
Symland Pty Ltd for the past 6 months and has been seeking to terminate the
contract with such.
At a recent mediation, Symland offered to walk away from
the contract if paid approximately $250,000. Owners would then have to
employ
others to provide the caretaking services presently provided by Symland. This
would mean that owners would be paying double
for caretaking services for at
least the equivalent of the next 4 – 5 months. The representative for
Duhig is also the chairperson
and secretary of Duhig and wants the owners to
instruct him as to how to vote in relation to the Deed of Settlement. However,
little
information has been given to owners, and even the motion to sign the
Deed of Settlement does not, in itself, explain the cost of
this decision. An
alternative motion, put forward by Mr Fisher, proposes that the Duhig
representative not vote to terminate the
contract, but this motion was omitted
from the original Notice.
- The issue is
made more complex by the fact that Mr Zunker, the Duhig representative, is the
son of Mr & Mrs E Zunker, who previously
held the caretaking contract, but
were not re-appointed after an extensive tendering process in which an
independent reviewer did
not recommend them. Mr Zunker is, in fact, employed in
some form by his parents. It is possible that his family would seek
re-appointment
if the Deed of Settlement is approved, but owners are not aware
of this conflict of interest. Thus, it is critical that any meeting
held
provides ample time for owners to read and consider alternative motions which
were put forward, but not provided with the Notice.
- According to an
email received on 18 October 2010, it would appear that Mr Zunker’s
intention is to hold the meeting on 21st October,
request that the meeting be adjourned for 1 week, then re-call the meeting to
consider the motions. While this may provide
time for owners to consider the
motions, some may have already submitted their voting papers (many owners live
outside the Brisbane
metropolitan area) and, there is no guarantee that Mr
Zunker will, in fact, do as he says. He could just as easily continue with
the
meeting if a quorum is present and rule motions passed or failed accordingly.
For this reason, an interim order is essential
for the preservation of all
owners’ interests in this matter.
Jurisdiction
The Cathedral Place Community Body Corporate (CPCBC) is created by virtue of
the Mixed Use Development Act 1993 (MUD Act) (s167(1)). The bodies
corporate created by the registration of a group titles plan or building units
plan subdividing a community development
lot or a community stratum lot becomes
a member of the CPCBC (s167(6), MUD Act).
The current members of the CPCBC are: Oxford and Cambridge body corporate;
Notre Dame body corporate; Canterbury and Westminster body
corporate; Kensington
and Sandringham body corporate; Duhig body corporate; and Cathedral Village body
corporate. A member of the
CPCBC may appoint a person to represent the member
(s169(1), MUD Act).
The Building Units and Group Titles Act 1980 (BUGT Act) applies for
the operation of the MUD Act (s5A, BUGT Act). Section 214A of the MUD Act
provides that “Unless otherwise
provided in this Act, a dispute about the
operation of this Act or the rights and obligations of persons under this Act
may be dealt
with under the Building Units and Group Titles Act 1980,
part 5”.
Part 5 of the BUGT Act concerns disputes. Part 5, division 3 makes provision
for orders by a referee. Within division 3, section
77 provides general powers
of a referee to make orders. Relevantly, section 77(1) provides a general power
for a referee, on application
of a proprietor, to make an order on any person
entitled to make an application under this subsection or on the chairperson,
secretary or treasurer of
the body corporate for the settlement of a dispute, or
the rectification of a complaint, with respect to the exercise or performance
of, or the failure to exercise or perform, a power, authority, duty or function
conferred or imposed by this Act in connection with
that parcel. An
order made may include such ancillary or consequential provisions as the referee
thinks fit (s73(1)(f), BUGT Act).
The Applicant is a member of the Duhig Body Corporate and is therefore
entitled to make an application under section 77(1), against
the chairperson
and/or the Duhig Body Corporate.
Investigation
A referee may make investigations with respect to the application as the
referee thinks fit (s.73(1)(f), BUGTA).
Submissions
Pursuant to section 73 of BUGTA, submissions were sought from all owners
(excluding the Applicant), in response to the final orders
sought.
On 2 November 2010, a copy of the application was provided to Peter Zunker
for distribution to all owners of lots included in the
scheme (excluding the
applicants).
In addition to the submission made in response to the application for the
interim order which is repeated below for the sake of completeness,
a further
submission from the Owner of Lot 46 was received, supporting the application.
The owner stated that Notices received by
owners from the body corporate are
always written in a legalistic way with little supporting explanation in easily
understandable
form and with little or no explanation of reasons/alternative
options and comparative costs/benefits. The owner also stated that
it was of
some concern that there is a possible conflict of interest for the Duhig
representative on the body corporate concerning
the caretaking contract. The
Owner of Lot 46 believes that it is important that rules for proper notice and
form of meetings be
strictly observed. The Owner further states that the
resolutions in question concern a cost to owners of $250,000, which is
substantial.
It is not clear why such a cost should be incurred, why it is
necessary to do so now and the consequences of not incurring such
a cost at this
time, she further states. She hopes that any new meeting will explain the
available courses of action and the likely
changes and outcomes more
clearly.
Peter Zunker, Chairperson of the Duhig Body Corporate made submission in
response to the application for the interim order, to the
following effect:
- This situation
has arisen due to an unintentional error in the printing of the Notice of
Meeting. In an email dated 18 October 2010
from Grant Mifsud, Mr Mifsud states
that Archers Body Corporate Management accepts full responsibility for the error
and issued the
amended Notice of Meeting at no additional cost to the Body
Corporate.
- Nothing under
the BUGTA allows either the Chairperson or Secretary the ability to rule
meetings invalid nor to call a meeting nor
change the date of a meeting that has
been called. The only power that a Chairperson has is to rule motions out of
order under Part
2 Schedule 2 section 4. Neither the Chairperson, Secretary nor
Body Corporate Manager has the power to change the dates of general
meetings.
- The primary
purpose for calling the general meeting of Duhig Body Corporate was in order to
instruct the representative for Duhig
as to the wishes of Duhig lotholders in
respect of the motion put forward in the Committee Meeting held on 11 November
2010.
- All other
residential bodies corporate of Cathedral Place have called general meetings on
the same date, 21st October 2010, to vote on the same
motion to give their representatives guidance in this matter at the community
body corporate.
- Duhig body
corporate does not have any control over the date of the Community Body
Corporate meeting which has been set for 25th October
2010. The other date which Duhig Body Corporate has no control over is the date
for termination of Symland in the deed of
settlement, which is 4 November
2010.
- Should it be
determined that an adjourned meeting would be invalid, then a further general
meeting of Duhig held after the Community
Body Corporate votes to decide the
motion, would result in Duhig lot holders not participating in the decision.
Holding a general
meeting of Duhig will have no impact on the outcome at the
Community Body Corporate.
- Mr
Fisher’s motions were submitted some time prior to the Committee meeting
of the 11 October 2010 with the expectation that
they would be dealt with as and
when a general meeting of Duhig was called. Mr Zunker fails to understand how
Mr Fisher’s
motions effect the voting on the motion submitted by the
Committee, as it requires a yes or not vote.
- In an email
dated 18 October 2010, Mr Zunker outlines how he proposes to deal with the
situation as follows:
- If the
21st October meeting does not achieve quorum, it will
be held in another 7 days time – same place same time. Should that occur,
Mr Zunker will request that the CBC meeting be adjourned until then for an
outcome of a vote from Duhig. The CBC may or may not
adjourn the meeting. The
7 days notice requirement would be complied with from the date of the amended
voting paper.
- If the
21st October meeting does achieve quorum, lotholders
present will have discussion and Mr Zunker will be requesting consent from the
meeting
to adjourn the meeting until 25th October to
give time for the voting papers to come in and votes to be recorded – 7
days notice from the date of the amended
voting paper will be achieved.
- If the
meeting does not consent to the adjournment, Mr Zunker will take the votes on
the day and if anyone objects, then an application
to the Commissioner’s
Office can be made.
Applicants’ Reply
The Applicant inspected the submissions made in response to the application
for both interim and final orders and replied to the following
effect:
- As Ms Wise
points out, the BUGTA was not properly followed, and as a result, it was
difficult for owners to understand the nature
of the motions being submitted.
The delay in providing some of the alternative motions and the reasons for such
motions meant that
owners scarcely had time to request further information.
- There is nothing
in the Act that allows an “addendum” to be sent out after the Notice
of Meeting, and in particular, to
be sent out in less than 7 days prior to the
meeting. Thus, the Addendum which was sent out containing some of the motions
does
not comply with the Act. The meeting was not called according to the
legislation.
- The mandatory
adjournment as set out in Schedule 2, Part 2, 3(3) is not designed to replace
the requirements for proper Notices.
A quorum was present on 21 October, but
the chairperson adjourned the meeting until 25 October. As far as the Applicant
is aware,
no owners were notified of the new date for the adjourned meeting.
Thus Schedule 2, Part 2, 3(3) was irrelevant to the actual meeting.
In the end,
owners had little time to discuss or explore the issues being raised, nor did
they know that the meeting might be adjourned.
- The fact that
owners could make an application to this Office if the meeting of 21 October was
not adjourned was irrelevant in light
of the fact that a submission had already
been made.
- Upon his receipt
of the Notice of Meeting for 21 October on 15 October, the Applicant immediately
notified Mr Zunker of the mistake.
The simple solution was to ask Archers to
immediately resend the corrected notice and to change the meeting date to 25
October,
the date that was set for the adjourned meeting.
- The question is
not what view Mr Fisher and the Applicant hold, but whether or not the
chairperson or secretary has the authority
to send out a Notice of a General
Meeting which does not comply with the legislation.
- This application
is not about motions passed or considered at the meeting held first on 21
October 2010 and then adjourned until the
25th. It is
about the rights of owners to expect that with regard to the calling of
meetings, the legislation will be followed so that
they have sufficient time to
investigate motions being put to that meeting. In the past 4 years, the
Applicant has seen at least
2 other occasions when Mr Zunker has been involved
in calling inappropriate meetings.
Update
The meeting scheduled for 21 October 2010 was adjourned until 25 October
2010. The only motion carried at the adjourned meeting was
the first, which was
to adopt as a true and correct record, the minutes of the adjourned Annual
General Meeting held on 17 May 2010.
All three motions in relation to the
caretaking contract failed, along with another motion in relation to a visitor
car park.
Determination
Relevant Law
The BUGTA contains relevant provisions to the following effect:
- An EGM shall be
held whenever it is convened by the committee (s.1(2), Part 2, Schedule 2).
- Any person
entitled to vote at a general meeting of a body corporate may by notice in
writing served on the secretary of the committee
require inclusion in the agenda
of the next general meeting of the body corporate (other than a meeting in
respect of which notices
have already been given under section 1(4)) of a motion
set out in the first mentioned notice and the secretary shall comply with
the
notice (s.13(1), Part 2, Schedule 2).
- Notice of a
general meeting of a body corporate shall:
- be
served on each proprietor at least 7 days before the meeting (s.1(4)(a), Part 2,
Schedule 2);
- set
forth the date and time when and the place where the meeting is to be held
(s.1(4)(b), Part 2, Schedule 2);
- set
forth the business of the meeting and therein, in respect of each motion to be
considered by the meeting, specify whether the
motion to be carried requires a
resolution, special resolution, resolution without dissent or unanimous
resolution (s.1(4)(d), Part
2, Schedule 2).
- Every notice for
a general meeting shall be accompanied by a voting paper in respect of each
motion to be considered and determined
at the meeting for use by a person
entitled to vote if the person wishes to cast a vote in writing (s.1(6)(b)(i),
Part 2, Schedule
2)
- A motion shall
not be submitted at a general meeting unless notice of the motion has been given
in accordance with this section (s.1(7),
Part 2, Schedule 2).
- The chairperson
of a general meeting may with the consent of the meeting adjourn any general
meeting from time to time and from place
to place but no business shall be
transacted at an adjourned meeting other than the business left unfinished at
the meeting from
which the adjournment took place (s.1(9), Part 2, Schedule
2).
- A motion
submitted at a general meeting of a body corporate shall not be considered at
that meeting unless the number of persons present
at that meeting either
personally or by proxy and entitled to vote, together with the number of voters
whose votes are cast in writing
on that motion or election, constitute a quorum
for considering that motion (s.3(1), Part 2, Schedule2).
- One-fourth of
the persons entitled to vote on a motion constitute a quorum for considering
that motion (s.3(2), Part 2, Schedule 2).
- Where there is
no quorum within one-half hour after that motion or business arises for
consideration at that meeting, the meeting
shall stand adjourned to the same day
in the next week at the same place and time and if there is no quorum, the
persons present
personally or by proxy and entitled to vote, together with the
number of voters whose votes are cast in wirting on that motion or
on that
election, constitute a quorum (s.3(3), Part 2, Schedule 2).
- At a general
meeting of the body corporate, the chairperson may rule that a motion submitted
at the meeting is out of order if (s.4,
Part 2, Schedule 2):
- (a) The
chairperson considers that the motion, if carried, would conflict with the
BUGTA, or the by-laws, or would otherwise be unlawful
or unenforceable; or
- (b) Section
1(7) has not been complied with with respect to the motion.
- A vote on a
motion submitted at a general meeting of a body corporate may be cast (s.5, Part
2, Schedule2):
- (a) By the
person entitled to vote, either personally or by the person’s proxy duly
appointed in writing; or
- (b) By
furnishing to the secretary of the body corporate a voting paper referred to in
section 1(6)(b) indicating the vote of the
person entitled to vote on that
motion.
- Notwithstanding
that a person entitled to vote at a general meeting of a body corporate has cast
a vote on a motion submitted at that
meeting on a voting paper, if the person
attends that meeting either personally or by another person holding a proxy, the
person
may before commencement of the business of the meeting notify the
chairperson or secretary of the body corporate that the person
withdraws that
voting paper and where the person does so (s.6, Part 2, Schedule
2):
- (a) For the
purpose of determining whether there is a quorum for consideration of any such
motion, the person’s voting paper
shall be disregarded; and
- (b) For the
purpose of counting the votes on that motion, the person’s voting paper
shall be disregarded; and
- (c) The person
or the person’s proxy may vote on that motion in the same manner as if the
person had not furnished that voting
paper.
Decision
Validity of Meeting
From the information supplied in the application and submission, as stated in
my reasons for the interim decision, it appears as though
the following breaches
of the BUGTA occurred in relation to the original Notice of Meeting, dated 12
October 2010:
- Failed to
specify, in respect of motions 4 and 5, whether the motion to be carried
requires a resolution, special resolution, resolution
without dissent or
unanimous resolution (s.1(4)(d), Part 2, Schedule 2);
- Was not
accompanied by a voting paper in respect of each motion to be considered and
determined at the meeting (in respect of motions
4 and 5) for use by a person
entitled to vote if the person wishes to cast a vote in writing (s.1(6)(b)(i),
Part 2, Schedule 2).
In respect of the re-issued Notice of Meeting dated 15 October
2010, it appears as though the above breaches of the BUGTA were remedied.
However, this came at the expense of a breach of the requirement in s.1(4)(a),
Part 2, Schedule 2 to provide at least 7 days notice
of the meeting scheduled
for 21 October 2010, although the adjourned meeting which was held on 25 October
2010, was ultimately held
after 7 days notice to owners.
For the reasons outlined in my interim decision, I declined to order any form
of interim relief to either prevent the meeting from
proceeding, or to prevent
any motions purportedly decided at it from being implemented. In light of the
results of the meeting,
at which only one motion (to confirm the minutes of the
most recent Annual General Meeting) was passed, with no dissenting votes,
I do
not see any need to investigate this matter further. In the absence of any
owner either making application with the office
after 21 October 2010, or making
submission in response to this application, complaining of any disadvantage
suffered by the lack
of notice (except for the submission from the owner of lot
46, which in my view was more critical of the content of the notice, or
lack
thereof, rather than the period of notice given) I decline to make a final order
declaring the meeting invalid, as requested
to do so by the Applicant.
Calling of General Meetings Generally
In relation to the first and second orders sought by the Applicant, I decline
to make any orders, on account of there not being any
“dispute”.
After the application for the interim order was dismissed, and the outcome of
the meeting ultimately held on 25 October 2010 known,
the Applicant was given
the opportunity to advise whether he still wished to proceed with the
application for final orders. The
Applicant advised that he believed the
application needed to proceed because the final orders seek a ruling as to
whether a general
meeting should go ahead if the agenda/calling of the meeting
is not done correctly. He further stated that that was a problem in
their
building and therefore should at least find out what the ruling would be in such
a scenario.
This application has been made pursuant to section 77(1) which relevantly
provides a power for a referee, on application of a proprietor,
to make an order
on any person entitled to make an application under this subsection or on the
chairperson, secretary or treasurer
of the body corporate for the settlement of
a dispute, or the rectification of a complaint, with respect to the exercise or
performance
of, or the failure to exercise or perform, a power, authority, duty
or function conferred or imposed by this Act in connection with
that parcel. As
mentioned earlier, under ‘Jurisdiction’, a referee’s power to
make an order in relation to the
MUD Act is conferred by section 214A of that
Act.
Relevantly, section 77(1) specifies that a ‘dispute’ or
‘complaint’ must relate to the exercise or performance
of, or the
failure to exercise or perform, a power, authority, duty or function conferred
or imposed by this Act. Section 214A contemplates
a ‘dispute’ about
the MUD Act’s operation
or the rights and obligations of persons under
the MUD Act. A referee’s power under section 77(1) is to settle the
‘dispute’.
In my view, these provisions require the existence of a
‘dispute’.
However, neither Act defines the meaning of
‘dispute’. In the comparable dispute resolution jurisdiction
conferred by
the Body Corporate and Community Management Act 1997 (BCCM
Act), section 227 prescribes the meaning of ‘dispute’ as being
between particular parties such as the owner of a lot and the body corporate,
with section 238 stating that A person ... may make an application if the
person is a party to, or is directly concerned with, a dispute to which this
chapter (chapter
6) applies and has made reasonable attempts to resolve the
dispute by internal dispute resolution. Section 276(1) of the BCCM Act
provides that an adjudicator may make an order to resolve a dispute. Subsection
(1) also contemplates
the making of a declaratory order, but there is no
equivalent power in the BUGT Act.
The issue of the existence of a
‘dispute’ under the BCCM Act has been considered by the District
Court (the then appellant
jurisdiction against an order made by a department
adjudicator under the BCCM Act). In K.G. Tully & Anor. v The Proprietors
The Nelson Body Corporate [2000] QDC 031,
Judge Robin QC held that
There must be “dispute” before an adjudicator has jurisdiction.
The application identified the committee of the body
corporate as the other
party to the dispute. The respondent's case is that the nature of the
permission sought by the appellants
was such that
the body corporate
itself must give permission or authority; it never having been asked by the
appellants to do so there can be no
dispute involving it as a party, and
therefore no right in the applicants to apply to the adjudicator on the basis
that they are
parties to "a dispute" for
purposes of s.192(1)(a)
(renumbered as section 238). The objection to the application is sound in
principle, in my opinion. The
existence of a relevant “dispute” is
fundamental to an adjudicator having jurisdiction.
In Dindas &
Anor v Body Corporate for One Park Road CTS 2114 & Ors [2006] QDC 302,
Judge Wilson SC removed an adjudicator’s order stating that “The
dispute resolution provisions do not empower an adjudicator to make orders about
how a lot owner may vote in relation to a future
matter, and limit the
adjudicator’s powers to circumstances where a power has been exercised
contrary to the legislation.
The adjudicator has assumed (without any factual
foundation for the assumption) that all future proposals for the appointment of
a building manager by either the appellants, or the respondents will be
"unreasonable" and, therefore, invalid when there is
no proper basis
for that presumption. Further, there is nothing in the Act or modules that
prevent a lot owner from voting at a general
meeting in favour of the
appointment of themselves as a service contractor, even though they might derive
a direct or indirect benefit.”
These comments are relatable to
the jurisdiction of a referee under the BUGT Act and support the view that a
referee only has jurisdiction
to make an order if there is an identifiable
‘dispute’. I am not aware of any provision in the BUGTA or the MUD
Act
which empowers a referee to deal
with an anticipated contravention of
either of these Acts (in contrast to the power of an adjudicator under section
276(1) of the
BCCM Act). The BUGT Act and the MUD Act are quite specific in
conferring powers on a referee. It should also be noted that section
214A of
the MUD Act does
not in any way confer exclusivity.
The Applicant purported to seek, in the first and second orders sought, a
declaration concerning the validity of future extraordinary
general meetings
because it would be desirable to know what the ruling would be in a scenario
where a Notice of General Meeting was
not issued correctly. The application in
relation to the meeting scheduled for 21 October 2010 and adjourned to 25
October 2010 has
been determined. The Applicant goes on to seek orders in
relation to a hypothetical situation which may or may not eventuate in
the
future. In such circumstances, I do not consider that the first and second
final orders sought relate to a ‘dispute’
of the nature mentioned in
section 214A of the MUD Act. I do not consider that a referee has power to make
orders about matters
that are not in existence at the time an application is
lodged. I consider that a referee’s powers are limited to circumstances
where a power has been exercised contrary to legislation.
If a “dispute” does arise in the future, then an interested party
will be at liberty to make an application with this
Office at that
time.
In my view, the ‘dispute’ the subject of this
application has been resolved and the ‘dispute’ which the applicant
contemplates in relation to the calling of future extraordinary general meetings
is not a dispute about the operation of the MUD
Act or the rights and
obligations of persons under the MUD Act, at this stage. Therefore, the first
and second final orders sought
are also dismissed.
Order
For these reasons, I make the order above.
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