TAKE NOTICE that pursuant to an application made under the abovementioned Act by the Body Corporate for Currimundi Lake Freehold Retirement Villas No. 4 community titles scheme 29518

DJ ReardonI hereby order that for the purposes of the Body Corporate and Community Management Act 1997 ("the Act"), and pursuant to section 229 of the Act, the next financial year-end date of the Body Corporate for Currimundi Lake Freehold Retirement Villas No.4 community titles scheme 29518, shall be 30 April 2003.

I further order that thereafter, each successive financial year for the Body Corporate for Currimundi Lake Freehold Retirement Villas No.4 community titles scheme 29518, shall begin on 1 May, and end on 30 April respectively.2n

STATEMENT OF ADJUDICATOR'S REASONS FOR DECISION - REF 0198-2003

"Currimundi Lake Freehold Retirement Villas No.4" CTS 29518

The Applicant, the Body Corporate for Currimundi Lake Freehold Retirement Villas No. 4 community titles scheme 29518, has sought the following order of an adjudicator under the Body Corporate and Community Management Act 1997 ("the Act"), quote-

"That the adjudicator agree to change the Body Corporate's Financial Year End to 30th April (and dates when later financial years begin to 1 May)."

The "Currimundi Lake Freehold Retirement Villa No.4" community titles scheme was originally created under a building format plan of subdivision registered on 9 August 2001 and community management statement registered on 28 August 2001. The community management statement indicates that the Body Corporate and Community Management (Standard Module) Regulation 1997 ("the Standard Module") applies to the scheme.

Schedule 4 of the Act defines the "financial year" for community titles schemes (other than schemes originally created under the Building Units and Group Titles Act 1980) in the following terms:

""financial year", of the body corporate for a community titles scheme (other than a community titles scheme established for an existing 1980 Act plan under the transitional provisions), means--

(a) the period from the establishment of the scheme until the end of the month immediately before the month when the first anniversary of the establishment of the scheme falls, and each successive period of 1 year from the end of the first financial year; or

(b) if an adjudicator changes the financial year of the body corporate--the period fixed by the adjudicator as the financial year and each successive period of 1 year from the end of the period."

As can be seen from the above provision, the Act contemplates bodies corporate operating in financial years that are not necessarily the normal commercial financial year of 1 July to 30 June. The financial year of a body corporate is important for a number of reasons, including determining budgeting and reporting periods, and the timing of annual general meetings of the Body Corporate.

Section 229 of the Act allows an adjudicator to issue an order changing a body corporate's financial year. Specifically, section 229 provides the following:

"With the consent of the body corporate, the order of the adjudicator may include a change of the body corporate's financial year and of the dates when later financial years begin."

In the supporting grounds to the application, the Body Corporate indicates that the financial year dates were discussed at a general meeting held on 19 March 2003. I have before me a copy of the minutes of this meeting, which include the following resolution:

"that the 30th April each year be the end of the Financial Year for Stage 4, and that the next Annual General Meeting be called for Monday the 2nd June at 9.00.A.M. Carried."

In the circumstances, I am satisfied that the Body Corporate has consented to the proposed change to the financial year of the Body Corporate, and further, I am satisfied that it is reasonable and appropriate for me to make the order sought by the Body Corporate.