Body Corporate and Community Management Act 1997 (Qld) (Act), sections 227and 229(3)(a)

Body Corporate and Community Management (Standard Module) Regulation 2020 (Standard Module)

ADMINISTRATOR - whether an administrator should be appointed - who should be appointed, with what powers, and for how long.

1. Mrs Christine Kolenc is appointed as Administrator to the Body Corporate for Kuranda Resort Commercial CTS 30781 scheme for a term of 12 months or until the scheme is terminated by order of the Court.
2. Mrs Kolenc shall have the powers of the Body Corporate, the Body Corporate Committee and each voting member of the Committee and is authorised to carry out all the functions of the Body Corporate, the Body Corporate Committee and each voting member of the Committee.
3. Mrs Kolenc is to be remunerated by the Body Corporate at the rates stated in the Administrator Agreement provided with this application.

• [1] This application is brought by The Body Corporate for Kuranda Resort Principal Scheme pursuant to a resolution dated 29 June 2025.
• [2] The application seeks orders that:

(a) Christine Kolenc be appointed as Administrator to the Body Corporate for Kuranda Resort Commercial CTS 30781 scheme for a term of 12 months or until the scheme is terminated by order of the Court;

(b) Mrs Kolenc shall have the power of the Body Corporate, the Body Corporate Committee and each voting member of the Committee and is authorised to carry out all the functions of the Body Corporate, the Body Corporate Committee and each voting member of the Committee; and

(c) Mrs Kolenc will be remunerated by the Body Corporate at the rates stated in the Administrator Agreement.[1]

• [3] The Applicant is applying for orders on an urgent basis to appoint Mrs Christine Kolenc as administrator to the Kuranda Resort Commercial CTS 30781 (KRC), with all the powers of the body corporate.
• [4] KRC is a subsidiary scheme in the layered scheme that has Kuranda Resort Principal Scheme CTS 30683 (KRP) as the principal scheme. The other subsidiary scheme is Kuranda Resort Accommodation CTS 30745 (KRA).
• [5] The Scheme is regulated by the Body Corporate and Community Management (Standard Module) Regulation 2020 ("the Standard Module") as per the attached Community Management Statement for the Scheme.[2]
• [6] Mrs Christine Kolenc was appointed as administrator to KRC on 17 June 2024 for a period of 12 months by adjudicator's order in Application number 0577-2024. Mrs Kolenc had also been appointed administrator of the KRA scheme on 7 June 2024 by adjudicator's order in Application number 0570-2024. Mrs Kolenc was also appointed administrator to KRP by adjudicator's order in Application number 1193-2024.
  • [2] The subsidiaries of the Applicant Scheme are the Commercial Scheme and the Accommodation Scheme. There is a third lot ("Lot 3") in the Principal Scheme which is owned by Cairns Tropical Resort Pty Ltd (in Liquidation) (CTR). Each of the three schemes and the individual lot collectively operate as the Kuranda Resort.
  • [3] The Applicant says it has gone to considerable lengths to resolve disputes that encompass both the subsidiary and principal schemes. However I am advised that Ms Kolenc, the Administrator of all the schemes in the layered arrangement, has been hampered in her efforts to return the schemes to compliance with the BCCM Act on account of the substantial levies in the amount of $1,241,542.04 ("the CTR Debt") owing by CTR to the Commercial Scheme. All lot owners in the scheme are in arrears of levies.
  • [4] The Administrator of the Accommodation Scheme had caused the Accommodation Scheme to pursue Supreme Court debt proceedings against CTR from November 2023. CTR resolved to appoint a liquidator on 12 June 2024, the day before the trial of the Supreme Court Proceedings. Mr David Hambleton was appointed the Liquidator of CTR on 12 June 2024.

• [5] On 11 November 2024 Ms Anne Meagher and David Stimpson ("the New Liquidators") were appointed as Liquidators of CTR in place of Hambleton. On 29 November 2024, the New Liquidators for CTR wrote to the Administrator advising that the Liquidator had approached the other lot owners in the scheme and all but one owner had agreed to join in a sale of the lots to increase the chance of a sale.
• [6] The applicant says that since November 2024 the New Liquidators have been hampered in their efforts to effect the sale of the CTR Lots on account of a mortgage that had been placed over the CTR Lots by Kobe Tiger Group Pty Ltd (KTG), a company owned by family members of the shareholders of CTR. However On 14 March 2025, the New Liquidators conducted an investigation of all the supporting documentation of the KTG Mortgage and rejected the claim in its entirety.[3]
• [7] The New Liquidators did not have funds to make the application to remove the KTG mortgage from the CTR Lots, which prevented a sale of the CTR lots by the Liquidator and KTG refused to take any steps to sell the CTR Lots. The applicant says that as there was no prospect of a sale of the CTR Lots, there was no prospect of the Administrator being able to return the scheme to compliance with the BCCM Act, and on 13 June 2025 the Administrator resolved to make an application to the Supreme Court, pursuant to section 79 for an order to terminate the scheme and appoint a trustee for sale.[4]
• [8] The Application to the Supreme Court to terminate the scheme was filed on 13 June 2025 and the hearing of the application has been set down for 5 August 2025.
• [9] I am advised that since the filing of the Supreme Court Application, an offer has been made to acquire all of the lots in the Scheme. The negotiations regarding the sale of the lots are continuing and it appears that there is a reasonable prospect of securing a sale. If a contract is entered into, it is proposed to adjourn the Supreme Court Application until the settlement of the sale.
• [10] The Commercial Scheme has 400 of the 1,000 contribution and interest entitlement for the Principal Scheme.
• [11] The Accommodation Scheme has 510 of the total 1,000 contribution and interest entitlement for the Principal Scheme.
• [12] I am advised that CTR as the owner of Lot 3 in the Principal Scheme, has 90 of the total 1,000 contribution and interest entitlement for the Principal Scheme.
• [13] All three schemes have been under administration at one time or another over a period of approximately 10 years, with the Principal Scheme being under administration on multiple occasions. All the schemes were under administration in 2012/2013 with the Commercial and Principal Scheme in a second period of administration in 2017/2018. The applicant says previous appointment of administrators has been due to systemic failure to manage the schemes in compliance with legislation, particularly in relation to the setting of budgets and the holding of compliant general meetings.
• [14] The Applicant is currently under administration and the administrator's appointment to

(a) the Accommodation scheme expired on 7 June 2025; and

(b) the Commercial Scheme expired on 17 June 2025.

• [15] The situation with the Principal Scheme and the Subsidiary Schemes remains the same as at 17 June 2024, as CTR still has not attended to payment of the arrears of levies for the CTR Lots.
• [16] The applicant says that since the appointment of Mrs Kolenc as administrator of the Principal Scheme on 19 December 2024, notwithstanding that there has been no working funds being available on account of the refusal of CTR to pay the CTR Debt, the Administrator convened a general meeting in compliance with the requirements of the BCCM Act and Regulations, with proposed and approved budgets and issued levies for the current financial year. However, all lots remain in arrears.
• [17] I note that Ms Kolenc has not received any remuneration at all in her capacity as Administrator and/or body corporate manager for all the schemes since January 2020 as she had used all available funds in an attempt to keep the Insurance paid and utilities connected.
• [18] There is currently no insurance for the Scheme, water has been disconnected and there are no funds to pay the Electricity provider.
• [19] I am advised that the Lots in the scheme have been mostly abandoned, the majority of lots are no longer being maintained by lot owners and are progressively occupied by squatters. There is one lot owner still residing at the property in Lot 10. There is various casual squatting taking place from time to time. The applicant says that there has been wide scale looting of abandoned property mostly being the lots owned CTR.
• [20] The remaining lot owners who represent approximately 8% of the lots in the scheme have not been able to meet the shortfall of the body corporate funds caused by the failure of CTR to pay the CTR Debt and the levies as they fall due.
• [21] The applicant says the scheme still presents as a serious health hazard to the remaining occupants. The lack of utility services also causes a serious security risk for the remaining occupants. The lack of insurance and in particular public liability insurance presents as an extreme financial risk to the owners.
• [22] Due to the current state of the Kuranda Scheme including the lack of any insurance the remaining lot owners have been unable to derive any income from their property.
• [23] The current financial position of the Scheme remains parlous with a combined bank account balance (Administration & Sinking Funds) of $5.57 with levy arrears owed by the Accommodation Scheme $524,093.02[5] and by the Commercial Scheme in the amount of $572,307.66[6] and CTR the owner of lot 3 of $515,003.24 to the Principal Scheme.
• [24] The Commercial Scheme is owed the total amount of $1,283,751.45 by lot owners for outstanding contributions. All Lot Owners are in arrears.[7]
• [25] The applicant says there is currently no committee and unless an Administrator is appointed within the next 7 days, there will be no one with the power to administer the Scheme to ensure to sign the deed required by the purchaser of all the lots to enable a sale and to enable the scheme to return to compliance with its duties under the BCCM Act or to continue with the Supreme Court Application in the event that the sale does not proceed.

• [26] The question for determination is whether the appointment of an administrator is warranted.
• [27] The three criterion by which this Office derives its dispute resolution jurisdiction under the Act are that the dispute must:

(a) come within the definition of section 227 of the Act;

(b) concern an enumerated purpose in section 228 of the Act; and

(c) be of a kind that may be resolved under chapter 6 by a dispute resolution process by section 229(1) of the Act.

• [28] I am of the view that the above criterion are enlivened as the dispute is:

(a) between the Applicant, a body corporate for a community titles scheme, and the Commercial Scheme, as an owner of a lot in the Applicant's Scheme;

(b) about obligations of the Principal Scheme to administer and insure the scheme for the benefit of owners including in particular the Applicant.

(c) is capable of being resolved by this adjudication application because it is not a complex dispute or a debt dispute.

• [29] The Applicant also submits that the circumstances meet the threshold for an expedited determination as

(a) there is an offer to buy all lots in the scheme that the buyer has stipulated that it wants all buyers and the body corporate to execute within 7 days and without the appointment of the Administrator, the condition enabling a sale of all the lots will not be able to be fulfilled: and

(b) there is the pending Supreme Court Application. The reappointment of the Administrator is necessary to continue the prosecution of the Supreme Court Application which should proceed if the sale falls through. If the sale does not proceed there is no prospect of the Commercial Scheme being able to return to compliance with the BCCM Act and the applicant believes it would be just and equitable to terminate the Scheme and sell the land, so that the debts of the scheme can be paid to its creditors and the balance be paid to the Applicant.

• [30] I believe it is appropriate to appoint Ms Kolenc as Administrator to the Body Corporate for Kuranda Resort Commercial CTS 30781 scheme, for a term of 12 months or until the scheme is terminated by order of the Court.
• [31] As the appointment of an administrator of both the Accommodation Scheme and the Commercial Scheme has expired, there would otherwise be no one who can enter into the deed required by the buyer of all of the lots or otherwise meet the requirements of the buyer to enable the sale of the lots to settle.
• [32] The reappointment of the Administrator is also necessary to continue the prosecution of the Supreme Court Application which would then proceed if the sale falls through.
• [33] The Applicant has nominated Mrs Christine Kolenc for appointment as Administrator. The Applicant is of the view that Mrs Kolenc, because of her extensive previous experience as an Administrator of the collective Kuranda schemes and is also the current Administrator for the Principal Scheme, is the most appropriate appointee.
• [34] Mrs Kolenc has agreed to act as the Administrator and her formal consent to act is attached to the application.[8]