austlii:qld/QBCCMCmr/2025/192
General information, not legal advice.
QBCCMCmr
2025-06-09
Original judgment source is linked above.
The Body Corporate for Hervey Bay Pier Resort (respondent)
Body Corporate and Community Management Act 1997 (Qld) (Act), and (3)(a)
Body Corporate and Community Management (Accommodation Module) Regulation 2020 (Accommodation Module)
The application for an interim order is hereby dismissed.
That the respondent [body corporate] is not to enter into any contract with KBW or apply the common seal to any contract with them until it is demonstrated [...] that the lodgement of Motion 9(a) was received prior to 28 February 2025, being the end of the financial year.
(a) That in the event of Motion 9(a) being received after 28 February 2025 that it be declared invalid;
(b) That in the event of Motion 9(a) being found invalid, that Motion 9(b) submission which was made prior to 28 February 2025 be accepted and that Sunstate Strata be appointed as strata managers effective immediately;
(c) That the Body Corporate be required to provide evidence that the nominations of the people named below were lodged before the 28 February 2025 and where they did not nominate in time, that they be removed from their position on the committee effective immediately
(i) Josef Purrer
(ii) Claire Blignaut
(iii) Anthony Purcell
(iv) Ian Cripwell
(v) Alex Evans
(vi) Kevin Hessey
(vii) Rashmi Madhan
(d) That any owner who submitted their nomination for a position/s prior to the 28 February be elected and that nominations for any remaining vacant positions be called for in accordance with [sections 33 and 34 of the Accommodation Module];
(e) That following the demonstration of validity, or not, of nominations for Committee and Motions, that a revised Sinking Fund budget, including increased levy amounts for each Lot owner, be prepared with alternative options developed as to recovery. This should include the possibility of extending the loan timeframe from 5 years with any implications for interest increases and payments outlined.
17 Nomination procedures for committee election other than at first annual general meeting [SM, s 16]
(1) This section states how individuals are nominated for election as a voting member of a committee at the annual general meeting for the community titles scheme, other than the first annual general meeting.
(2) The secretary must serve a notice on each owner of a lot shown on the body corporate's roll-
(a) setting out an owner's right of nomination under section 18 and inviting nomination; and
(b) stating that the owner, or a person nominated by the owner, is not eligible to be a voting member of the committee if the owner owes a body corporate debt in relation to a lot or lots owned by the owner at the time the members of the committee are chosen.
(3) The notice must be given at least 3 weeks before, but not earlier than 6 weeks before, the end of the body corporate's financial year.
See also section 76
(4) Nominations must comply with section 19 and must be given to the secretary by the end of the body corporate's financial year.
(5) As soon as practicable after receiving a nomination under this section, the secretary must forward written notice to the candidate acknowledging the nomination has been received.
Information from body corporate records given to interested persons
The purpose and scope of section 17 of the Accommodation Module
Providing clarity about when (and how many) nominations for ordinary membership of the committee should be invited at a general meeting benefits scheme governance by promoting lot owner involvement and larger committees, and reducing the potential for disputes.[17]
The [Act] is a lengthy, technical and complex instrument, with no fewer than six sets of subordinate and similarly complex 'module regulations'. It cannot be the case that the legislature expected all, or even most committee members of a body corporate, small, large or very large, to be experts in corporate law, or masters of community management. Indeed, the [Act] implicitly recognises that, if this legislation were at all times, and in all circumstances applied with the utmost rigour and most precious attention to detail, its objects and policies would be retarded by endemic disputation, rather than advanced.
The direction that a 'body corporate must act reasonably' in the performance of its 'general functions' does not suggest that every minor irregularity should be pounced on to impede or paralyse the normal conduct of business. The Code of Conduct for committee members does not demand administrative perfection, but simply directs them to 'take reasonable steps' to comply with the [Act]. If people 'honestly and reasonably believe' that they are validly elected members of a committee, their decision, which would otherwise be void, are not to be set aside.
There is no good reason to suppose that the [Act] is intended to be more draconian that [sic] the Corporations Act 2001 (Cth), which provides:
A proceeding under [the Corporations Act 2001] is not invalidated because of any procedural irregularity unless the Court is of the opinion that the irregularity has caused or may cause substantial injustice that cannot be remedied by any order of the Court...
This remedial provision has been construed liberally, as remedial legislation should be. It is capable of excusing the invalid appointment of a director, or the failure to assemble a quorum. It seems to be that the provisions of the [Act] should be approached in a similar way.
[2] The CMS includes the scheme's by-laws
[3] Sections 276)(1)(a) and (b) of the Act
[5] See Brighton on Broadwater Breezes [2018] QBCCMCmr 243 at [8]
[8] For general principles see for e.g., Australian Broadcasting Corporation v O'Neill [2006] HCA 46 and SDW2 Pty Ltd v JLF Corporation Pty Ltd & Ors [2017] QSC 1
[9] Cohen v Peko-Wallsend Ltd [1986] HCA 70 at [6]
[10] Meagher, Gummow and Lehane's Equity: Doctrines & Remedies (J.D. Heydon, M.J. Leeming, P.G. Turner) (Fourth Edition) (Sydney: LexisNexis Butterworths, 2002) at [21-395]; Bingham & Anor v 7-Eleven Stores P/L [2003] QCA 402 at [106]-[108]
[11] Section 13(1)(a) of the Accommodation Module
[12] Section 76(1) of the Accommodation Module
[13] Section 76(6) of the Accommodation Module
[15] By calling 1800 060 119(freecall) or visiting https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/legislation-and-bccm/services/enquire
[16] Section 4(a) of the Act
[17] Page 14, Explanatory Notes for SL 2020 No. 229
[18] See sections 283 and 321A(1) of the Act
[19] Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at [35]
[20] Edgecliff Apartments [2021] QBCCMCmr 30 at [23] to [27] citing Ainsworth v Albrecht [2016] HCA 40; Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177
[22] SZLGP v Minister for Immigration & Citizenship [2008] FCA 1198 [15] - [16] as cited in Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at [23]
[23] McKinnon v Secretary, Department of Treasury [2006] HCA 45; (2006) 228 CLR 423 [60] (Hayne J) as cited in Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at [24]
[24] Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at [36] and [42]
[25] Woden Valley Glass v Psaila (1993) 122 ALR 378, 391 as cited in Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177 at [47]
[26] Edgecliff Apartments [2021] QBCCMCmr 30 at [23] to [27] citing Ainsworth v Albrecht [2016] HCA 40; Body Corporate for Beaches Surfers Paradise v Backshall [2016] QCATA 177
[28] See Wei-Xin Chen v Body Corporate for Wishart Village CTS 19482 Appeal D 4080 of 2000, District Court of Queensland, 29 May 2001 (Unreported) at [27]
[30] See Tang v Body Corporate for Greenly Gardens CTS 41566 [2019] QCAT 207 at [41]
[31] [2013] QCATA 21 at [22] to [25]
[32] See Panorama 22 [2001] QBCCMCmr 80
[33] By calling 1800 060 119(freecall) or visiting https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/legislation-and-bccm/services/enquire
(1993) 122 ALR 378
(2006) 228 CLR 423