austlii:qld/QBCCMCmr/2025/363
General information, not legal advice.
QBCCMCmr
2025-10-21
Member Stilgoe, Member Collins
Original judgment source is linked above.
Beach Front Apartments on Trinity Beach [2025] QBCCMCmr 363
B. Montgomery Pty Ltd ACN 079 110 393 as trustee for the Montgomery Family Trust (applicant)
The Body Corporate for Beach Front Apartments on Trinity Beach (respondent)
Body Corporate and Community Management Act 1997 (Qld), sections 227(1) and 229(3)(a)
GENERAL MEETING AGENDA - SAME-ISSUE MOTIONS - REASONABLENESS
The body corporate passed a resolution to give its consent to certain lot owners making a material change of use (MCOU) application to the local government authority, to permit permanent residency of lots in addition to the approved short term letting. The applicant is the authorised letting agent and seeks an order that the resolution was unlawful.
The questions for determination are (a) whether the motion was void from the outset given the motion was on one of 3 same-issue motions which were not properly grouped on the original agenda as 'same issue motions', albeit that the other 2 motions were ruled out of order at the AGM; and (b) whether the body corporate acted unreasonably in consenting to the MCOU application because the change would diminish the value of the applicant's letting rights and materially change the predominant type of use of the scheme.
¾ an agenda issue, in that motions 13, 14 and 15 were 'same-issue motions' but were not presented as such in the AGM papers in the way required by section 79 of the Accommodation Module, and nor was the explanatory schedule prescribed by section 80(4) of the Accommodation Module included in the papers, and accordingly motion 15 was void from the outset and could not have been voted upon, or alternatively
¾ a decision making issue, in that the body corporate acted unreasonably in passing motion 15, in contravention of section 94(2) of the Act, and accordingly the resolution was invalid.
15 Change of Use to include permanent residential occupation Ordinary Resolution
Body Corporate for CTS 32389 to approve that the committee provides owners consent for common property to accompany any development application(s) to Cairns Regional Council from any individual lot owner or owners seeking a Material Change of Use for permanent residential occupation as well as existing short-term holiday letting.
This cost would be met by each lot owner wanting "residential occupation as well as existing short term holiday letting" and the Body Corporate for CTS
¾ The Scheme is identified within the Tourist Accommodation Zone as per Cairns Plan 2016. The Tourist Accommodation Zone Code taken from the Cairns Plan 2016 relevantly provides that the Tourist Accommodation Zone is to provide for:
¾ The 20 lots within the Scheme are holiday apartments.
¾ The Cairns Plan 2016 defines short term accommodation as:
(i) providing accommodation of less than three (3) consecutive months to tourists or travellers; or
(ii) a manager's residence, office or recreation facilities for the exclusive use of guests, if the use is ancillary to the use in subparagraph (i), but
(b) does not include a hotel, nature based tourism, resort complex or tourist park.
Examples: includes motel, backpackers, cabins, serviced apartments, accommodation, hotel, farm stay. Does not include hostel, rooming accommodation, tourist park.
(1) This section applies if 2 or more motions (the original motions) proposing alternative ways of dealing with the same issue are submitted, under section 76, for consideration at a general meeting of the body corporate.
(2) The committee must list the original motions as a group of motions dealing with the same issue (a group of same-issue motions) on the voting paper for the general meeting.
(9) Other than for an original motion that is part of a group of same-issue motions, if more than 1 motion about the same issue is listed on the agenda, or stated in a voting paper, for the meeting all motions about the issue are void.
¾ Motions 13, 14 and 15 all dealt with alternate ways of the Body Corporate making or consenting to a development application to Cairns Regional Council for a material change of use to allow permanent residential accommodation as well as short term letting (which is currently the only type of use permitted in lots within the Scheme).
¾ Motions 13, 14 and 15 were not included in the 2025 AGM Agenda as a Group of Same Issue Motions as required by section 79 of the Accommodation Module and nor was the explanatory schedule prescribed by section 80(4) of the Accommodation Module included in the 2025 AGM Agenda.
¾ Prior to the 2025 AGM being held, the Applicant instructed our firm to write to the Body Corporate to put the Body Corporate on notice that Motions 13, 14 and 15 in the 2025 AGM Agenda were void, pursuant to section 79(9) of the Accommodation Module because there was more than one motion included on the Agenda which proposed alternative ways of dealing with the same issue and they were not presented as a group of same issue motions.
¾ We requested that the Chairperson rule the Motions out of order pursuant to section 88 of the Accommodation Module. The Minutes of the 2025 AGM show that, in the event, Motions 13 and 14 were ruled out of order at the 2025 AGM, however, Motion 15 was not ruled out of order and it was voted upon as a valid Motion.
¾ Motion 15 was submitted by a lot owner, whereas Motions 13 and 14 were submitted by the committee. However, the lot owner who submitted Motion 15 must have had prior knowledge of Motions 13 and 14 because the words "Should Motion 13 and 14 be defeated" were included as a precondition to Motion 15 being considered, at the beginning of Motion 15.
¾ This is not a case where, if Motion 15 is declared void, a lot owner is disadvantaged by an error made by the committee in preparing the 2025 AGM Agenda and failing to include the three Motions as a Group of Same Issue Motions. The lot owner was cognisant that the other two Motions would be included on the Agenda, as is apparent from the drafting of Motion 15.
[33] The applicant argues that this issue should not disadvantage them or their relief regarding Motion 15, as this is nothing more than a technical defect. It is true that technical deviations from the legislation will not necessarily render a decision of the body corporate invalid. However, defective motions should not stand unless exceptional circumstances exist. Exceptional circumstances may be where the irregularity was trivial and has no material impact, and the irregularity caused no prejudice or disadvantage to other parties.
[34] I cannot accept the applicant's argument because, even when the elements of exceptional circumstances are established, where the legislative text indicates an intention that the error would invalidate the motions, I am bound to find those motions are void. The wording of section 79(9) of the Accommodation Module could not be clearer in that respect - the necessary consequence of not properly grouping same-issue motions is that all of them are void. Nonetheless, this does not conclude the matter for the applicant.
[35] The applicant also says that it was 'not necessary' for the body corporate to propose Motion 14. The applicant's position may be better articulated as an argument that the body corporate acted unreasonably in its decision and action to propose Motion 14 and not list it on the agenda as grouped with Motion 15. I do not suggest the committee could not have reasonably proposed Motion 14, but rather, the act of proposing and not listing it as a group of same issue motions could not be a reasonable action where it does not comply with the legislation. I also note that, before taking that action, the body corporate would have to make a conscious or inadvertent decision to do that act. It is with this decision process and action that the issue arises.
[36] Section 79 of the Accommodation Module was introduced, along with other amendments, for the purpose of enhancing lot owner protections and stopping 'gaming' of the outcomes where there are multiple motions dealing with the same issue. I do not mean to say that the committee actively turned its mind to the issue and purposefully failed to comply with section 79, rendering the applicant's Motion 15 invalid - in that regard, I note the outcome of the committee's action is that the body corporate's Motion 14 would also be invalid. Rather, the circumstances suggest committee failed to pay heed to the extremely relevant factor of section 79 of the Accommodation Module when it decided to place Motion 14 on the agenda and voting papers in the way it did, thereby unfairly disadvantaging the applicant In their legitimate attempt to have the installation approved.
[37] In my view, the circumstances indicate that the committee failed to have proper regard to a highly relevant requirement - namely, section 79 of the Accommodation Module - when resolving to list Motion 14 on the agenda and voting papers. I am therefore satisfied that the committee acted unreasonably in proposing and placing Motion 14 on the agenda and voting papers in the manner that it did. I will make an order that invalidates the body corporate's decision and action in this regard.
[38] It then follows that the only valid motion proposed dealing with the air conditioning condenser is Motion 15, and section 79 of the Accommodation Module does not impact the validity of Motion 15.
A motion that has been moved and accepted by the Chair thereupon comes into the control of, and is the property of, the meeting. It must be put to the vote unless:
1. one or more amendments to it are moved, voted on, carried and embodied in the original motion, thereby changing and superseding it;
3. one of the formal motions is passed to prevent a vote being taken.
¾ The standard of reasonableness is objective and the test is to be applied with reference to the time the allegedly unreasonable action was taken, given all relevant factors and excluding irrelevant factors.
¾ Acting reasonably requires consideration of all the circumstances, including a balancing of any competing interests.
¾ There is no onus on a body corporate to satisfy an adjudicator that it acted reasonably. Rather, if the adjudicator is to invalidate an action or decision, the adjudicator must be satisfied that the body corporate acted unreasonably.
¾ A body corporate's decision is not an unreasonable action simply because it could reasonably have made a different decision.
¾ An adjudicator may not simply substitute their own view as to what would be a preferable or 'more' reasonable decision.
¾ The material change of use to include concomitant permanent residential accommodation offends the:
¾ The original regulation module which applied to the Scheme was the Standard Module. Lot Owners decided by special resolution in 2013 to change the regulation module to the Accommodation Module, due to the nature of the Scheme. The Accommodation Module is not designed for community titles schemes that are used for permanent accommodation purposes. According to the Explanatory Memorandum for the Accommodation Module, it:
provides management processes designed for community titles schemes that are used predominantly for short or long-term letting purposes (including for example, holiday letting or serviced apartment operations) with the need for accommodation management.
¾ After changing specifically to the Accommodation Module from the Standard Module and putting long term Caretaking and Letting Agreements in place under the Accommodation Module, to introduce permanent residential accommodation to the Scheme is an unreasonable and inconsistent about-face which places the Applicant at significant and substantial financial disadvantage, having purchased the management rights business at the Scheme in reliance upon the fact that the Scheme allowed short term holiday accommodation only.
¾ The infrastructure on Scheme land, including carparking and activities permitted under the Letting Agreement, are tailored specifically to short term/holiday let accommodation and not to permanent residential accommodation, for example, until 30 June 2048 when the Letting Agreement expires, the Applicant may, without limitation:
¾ A letting agent for a scheme is a person authorised to conduct a business of letting out lots in the scheme for owners. However, owners are not obliged to use the authorised letting agent to let out their lots; they can do so privately or through another letting agent.
¾ The body corporate may choose to execute an agreement to the effect that the letting agent has such rights exclusive of other letting agents, but that exclusivity extends only to exclusive rights to use parts of the scheme for the purpose of the business, for example a reception area.
¾ If due diligence had been done, those matters presumably would have been priced into the value of the letting agreement from the outset.
¾ Even if the MCOU application is successful, it does not necessarily follow that the scheme will not still prominently be used for short term letting.
[1] Beach Front Apartments on Trinity Beach [2025] QBCCMCmr 290
[2] See Accommodation Module ss 88(1)(a) and (5)
[4] Horsley & Lang's Meetings Procedure, Law and Practice 8th ed, LexisNexis Australia, [10.15]
[5] [2011] QBCCMCmr 42 at p.6
[7] [2016] HCA 40 (Ainsworth)
[8] See also for eg Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177
[15] Ainsworth at [51]; Trojan at [32], [49]