austlii:qld/QBCCMCmr/2025/123
General information, not legal advice.
QBCCMCmr
2025-04-11
Original judgment source is linked above.
The Lakes - Cairns [2025] QBCCMCmr 123
The Body Corporate for Koolivoo Apartments (applicants)
The Body Corporate for The Lakes - Cairns (respondent)
Body Corporate and Community Management Act 1997 (Qld) (Act), sections 227 and 229(3)(a)
AGM RESOLUTIONS - MOTION TO EXTEND DURATION OF CARETAKING SERVICE CONTRACTOR FOR A PRINCIPAL BODY CORPORATE BY SECRET BALLOT
WHETHER SUBSIDIARY BODIES CORPORATE SHOULD HAVE THE OPPORTUNITY TO DECIDE BY SECRET BALLOT HOW TO DIRECT THEIR REPRESENTATIVE ON PBC HOW TO VOTE.
I HEREBY CERTIFY this is a true copy of the order and reasons for decision.
We ask that the attached motion be submitted to the 2024 PBC AGM on behalf of owner David Sun/ Sunshine Australia Pty Ltd.
That, subject to the payment of the Body Corporate's reasonable legal and administrative costs associated with the content of this resolution by Sunshine Group Australia Pty Ltd ACN 168 390 083 ('the Manager'), the Body Corporate agree with the Manager to vary the Management Agreement dated 2000, to extend the term of the Management Agreement with an option period of one year (1 July 2025 to 30 June 2026), by entering into the attached Deed of Variation with the Manager, and that the Chairperson or Secretary plus any other member of the Committee be authorised to affix the common seal of the Body Corporate to such deed.
"Has there been a similar offer made to The Lakes Cairns CTS 28090 ("PBC") and, if so, can you please provide our office with a copy so that the schemes under our management can properly consider the offers that have been made to them."
"The committee for the PBC is presently taking legal advice and will thereafter consider its position. Decisions made by the PBC committee are made by majority resolution either in full committee meeting or by VOCM. As you know, lot owners will receive a copy of the minutes of any committee decision made by the PBC in accordance with the legislative requirements and in that way, will be kept informed of any developments."
"Withholding details of a PBC offer, which in turn may prevent a subsidiary scheme from putting forward their individual offer for consideration, may prejudice our schemes unfairly and, further, may also be considered a prejudice to SGA themselves.Please advise how many pages the offer from SGA to the PBC consists of so that we can pay the required fee for a copy of records pursuant to the Act."
Further to the above there are concerns with respect to how Subsidiary Schemes can comply with the requirements of legislation with respect to voting upon original motion 11 (Variation to Agreement - by Secret Ballot) if the meeting is to be held on 30th September. I refer to my correspondence to you in April 2024 and your assurances that the PBC will be conducting all General Meetings pursuant to the Body Corporate and Community Management Act 1997 and its associated Regulations. Considering that my client schemes require much longer than a 21-day period of notice of the meeting.
[30] The purpose of the secret ballot process is to separate the information about a voter from their vote so the body corporate can ensure each vote has been cast by a person entitled to vote but the way in which the person votes is confidential. Providing the voting process is conducted correctly, there should be no way of connecting a particular vote to a voter from any of the ballot documentation.
_The subsidiary scheme representative must represent scheme B's body corporate - _
(a) in the way scheme B's body corporate directs; and
(b) subject to paragraph (a), in a way that is in the best interests of scheme B.
[7] The body corporate can direct its nominee to act by way of a general meeting resolution or a committee resolution, provided the resolution is validly passed.
which is in similar terms as section 103(6) of the Standard Module and provides:
_A nominee appointed by a subsidiary body corporate must represent the subsidiary body corporate - _
(a) in the way the subsidiary body corporate directs; and
(b) (subject to paragraph (a), in a way that is in the best interests of the subsidiary body corporate.
(a) in the way scheme B's body corporate directs; and
(b) subject to paragraph (a), in a way that is in the best interests of scheme B.
Subsidiary Schemes under the management of Zack's Strata are not in favour of extending the current management agreement, rather preferring to explore alternative regimes of management.
(a) a general meeting decision of a subsidiary scheme is not required in order to comply with section 103(6) of the Standard Module.
(b) section 100(1) of the Act provides that a decision of the committee is a decision of the Body Corporate. Therefore the relevant subsidiary scheme committee can provide the direction of the body corporate required by section 103(6) of the Standard Module.
(a) the Applicant schemes had already held a general meeting to decide upon the direction to give their representative in relation to a proposal to extend the Management Agreement (if the issue was deemed a restricted issue by the Applicant committees); or
(b) the committee for the Applicant schemes had decided it was not a restricted issue requiring a general meeting to decide how to direct their representative to vote in relation to a proposal to extend the Management Agreement.
That, subject to the payment of the Body Corporate's reasonable legal and administrative costs associated with the content of this resolution by Sunshine Group Australia Pty Ltd ACN 168 390 083 ('the Manager'), the Body Corporate agree with the Manager to vary the Management Agreement dated 2000, to extend the term of the Management Agreement with an option period of one year (1 July 2025 to 30 June 2026), by entering into the attached Deed of Variation with the Manager, and that the Chairperson or Secretary plus any other member of the Committee be authorised to affix the common seal of the Body Corporate to such deed.
(1) This section applies if the community titles scheme ("scheme B") is a lot included in another community titles scheme ("scheme A").
(2) The body corporate for scheme B must ensure that at all times there is a person (the
(3) The subsidiary scheme representative must be a member of the committee for scheme B's body corporate and, if the committee does not appoint the representative, is the chairperson of the body corporate for scheme B.
(5) The appointment of the subsidiary scheme representative has no effect until written notice of the appointment is received by the secretary of the body corporate for scheme A.
(6) The subsidiary scheme representative must represent scheme B's body corporate -
(a) in the way scheme B's body corporate directs; and
(b) subject to paragraph (a) , in a way that is in the best interests of scheme B.
The subsidiary scheme representative must represent scheme B's body corporate -
(a) in the way scheme B's body corporate directs; and
(b) subject to paragraph (a), in a way that is in the best interests of scheme B.
Oceana on Broadbeach [2025] QBCCMCmr 109,
Lovel v The Body Corporate for The Reserve (No 2) [2018] QCATA 169 at [35] and [36].
[1] Attachment 1 - Management Agreement 01.07.2000 pages 40 - 58
[2] Attachment 1 - Management Agreement 01.07.2000 pages 59-70
[6] Attachment1 - Email TCM with Notice of Nominations 10.06.24 Pages 125 - 129
[7] Attachment 1 - Email SGA (Current Manager) to TCM as Principal Scheme BCM submitting motions for the Principal Scheme 2024 AGM Pages 130 - 142
[12] Attachment 1- Page 148
[14] Attachment 1- Page 150- 232
[15] per email attached to the Application at page 143
[16] See p151 of attachment to application
[17] See Lakeview [2011] QBCCMCmr 369