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 Principal CTS 30683 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 attached to the application at Annexure 6.

• [1] This dispute resolution application, lodged with this Office on 16 December 2025, pursuant to a resolution dated 8 December 2025, concerns the administration of the Kuranda Resort Principal scheme.
• [2] The applicant is Christine Kolenc, who is the current Administrator and seeks her reappointment as Administrator for a further term of 12 months due to the scheme's severe financial distress and inability to comply with legislation unless an administrator is appointed.
• [3] More specifically, the applicant is seeking the following orders:
  1. Christine Kolenc is to be appointed as Administrator to the Body Corporate for Kuranda Resort Principal CTS 30683 scheme for a term of 12 months or until the scheme is terminated by order of the Court.
  2. 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
  3. Mrs Kolenc will be remunerated by the Body Corporate at the rates stated in the Administrator Agreement attached to the application at Annexure 6.

• [4] Previously, on 19 December 2024 in the decision Kuranda Resort Principal [2024] QBCCMCmr 476, I appointed Christine Kolenc as Administrator of the Principal Scheme for a term of 12 months.
• [5] Kuranda Resort Principal (KRP) is the principal scheme in a layered arrangement. There are two subsidiaries' schemes: the applicant Kuranda Resort Accommodation CTS 30745 (KRA), and Kuranda Resort Commercial CTS 30781 (KRC). KRP also includes an individual lot (Lot 3), owned by Cairns Tropical Resorts Pty Ltd.
• [6] There is a long history of disputes relating to the administration of these schemes and Administrators have been appointed in the schemes since 2012. The present appointment of the Administrator to the Principal Scheme is to expire on 19 December 2025. The Applicant seeks reappointment as Administrator for a further 12-month period (or until the Scheme is terminated), to administer the scheme to enable the sale of the lots and/or oversee the progress of the Supreme Court Application to its conclusion in the event that the sale of the lots does not proceed.
• [7] The application outlines a history of systemic failure and disputes, citing numerous Adjudicator's Orders dating back to 2012, which resulted in the schemes being under administration multiple times over the last ten years.
• [8] The primary obstacle preventing the Administrator from returning the schemes to compliance with the Body Corporate and Community Management Act 1997 is the $3,322,058.75 debt (the "CTR Debt") owed by Cairns Tropical Resort Pty Ltd (In Liquidation) (CTR), which owns Lot 3 in the Principal Scheme and 55 lots overall ("the CTR Lots").[1]
• [9] The financial position of the Principal Scheme is "parlous," with a combined bank account balance (Administration & Sinking Funds) of only $3.49, and all lot owners except one are in arrears. Furthermore, Ms. Kolenc has not received any remuneration as Administrator or Body Corporate manager since January 2020, as available funds were used to attempt to keep insurance paid and utilities connected.
• [10] As previously advised to this Office, the entire scheme is in a severely compromised state and poses serious health and safety hazards to the remaining occupants. Specific issues include:
• [11] Lack of Utilities: The scheme is without water, has a non-functioning sewerage treatment system, and its electricity supply was permanently disconnected in November 2025 because the infrastructure is unsafe.
• [12] Safety and Maintenance: The scheme has no insurance, including public liability. The swimming pool had been declared unsafe and non-compliant by the Mareeba Shire Council, carrying a potential fine of $725,850.00, which the Administrator addressed at her own expense.
• [13] Occupancy Issues: Lots have been mostly abandoned by tenants, and the property is progressively occupied by multiple squatters. There has also been wide-scale looting of abandoned property, particularly CTR-owned lots.
• [14] The Accommodation Scheme previously pursued debt proceedings against CTR, leading to CTR being placed in liquidation. 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. However, they have been hampered in their efforts to effect the sale of the CTR Lots due to a mortgage that had been placed over the CTR Lots by Kobe Tiger Group Pty. Ltd. (KTG) which is owned by family members of CTR shareholders.[2]
• [15] The applicant says that although the liquidators rejected the KTG claim in March 2025, KTG has refused to release the mortgage to enable the New Liquidators to sell the CTR Lots. As there appeared to be no prospect of a sale of the CTR Lots, and there was no prospect of the Administrator being able to return the Applicant scheme to compliance with the BCCM Act, the Administrator filed Supreme Court applications to terminate the Commercial and Accommodation schemes and appoint a trustee for sale (the Termination Applications).[3]
• [16] However, the applicant advises that the New Liquidator has now obtained funding to make an application to the Supreme Court to have the KTG Mortgage declared void so that, if this is successful, the New Liquidator will be able to sell the CTR lots without the impediment of the KTG Mortgage. That Application was due to be heard on 10 December 2025.
• [17] The applicant says there is a reasonable prospect of securing a sale of the CTR Lots if the New Liquidator's Application to declare the KTG Mortgage is successful. If a contract of Sale of the CTR Lots is entered into, it is proposed to adjourn the Termination Applications until the settlement of the sale of that contract.
• [18] The Administrator has therefore deferred the application to terminate the Kuranda Schemes until 19 January 2026, to allow the New Liquidators application to proceed on 10 December 2025.[4] If the New Liquidator's application is successful the New Liquidator will be able to cause the sale of the CTR lots without the impediment of the void KTG mortgage. This will allow all owners to sell the scheme and resolve the situation regarding the arrears of levies and allow the scheme to return to compliance with the BCCM Act. If this occurs there will be no need to proceed with the Administrator's application to terminate the schemes and she will withdraw the application.
• [19] However, if the New Liquidator's application is not successful, then given the refusal of KTG to take steps as mortgagee to sell the lots or pay the arrears of levies, and the inability of the New Liquidator to sell the lots for an amount that will discharge the arrears owing to the body corporate and the amount under the mortgage, there is no possibility of there being any funds available to the Administrator to return the scheme to compliance with the legislation. In these circumstances it will be necessary to terminate the schemes.
• [20] The Administrator has deferred the Termination Applications until January 19, 2026, awaiting the outcome of the New Liquidators' Supreme Court application on December 10, 2025, to have the KTG Mortgage declared void.
• [21] The Applicant therefore seeks reappointment as Administrator for a further 12-month period (or until the Scheme is terminated), to administer the scheme to enable the sale of the lots and/or oversee the progress of the Supreme Court Application to its conclusion in the event that the sale of the lots does not proceed.

• [22] The three criteria by which the Office of the Commissioner derives its 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.

(a) between the Applicant, as committee member, and the Principal Scheme

(b) about obligations of the Principal Scheme to administer and ensure 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.

• [24] The issues to be decided in this application are whether an administrator should be appointed and, if so, how long the appointment should be for, with what powers, and who should be appointed.
• [25] The applicant is Christine Kolenc, who is the current Administrator and seeks reappointment as Administrator for a further term of 12 months, or until the scheme is terminated. Having regard to the application and provided material, I am of the view that her reappointment is required because her current appointment to the Principal Scheme expires on December 19, 2025.
• [26] In the event that the liquidator's application to void the KTG mortgage is successful it will be necessary to have an administrator who is able to able to effect the sale of all lots in the scheme. I am advised that as a condition of contract, the potential purchaser requires the Body Corporate (which only the Administrator can act on behalf of) to enter into a deed to rescind certain resolutions.
• [27] On the other hand, if the liquidator's application to void the KTG mortgage is unsuccessful, and the sale of lots does not proceed, it will be necessary to have an Administrator in place to prosecute the Supreme Court Application to terminate the schemes on January 19, 2026, as this would be the only way to pay the scheme's debts.
• [28] For the above reasons I consider it is appropriate to make the following orders:

1. Mrs Christine Kolenc is appointed as Administrator to the Body Corporate for Kuranda Resort Principal CTS 30683 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 attached to the application at Annexure 6.