Body Corporate and Community Management Act 1997 (Qld) (Act), sections 227(2) and 229(3)(a)

Body Corporate and Community Management (Standard Module) Regulation 2008 (Standard Module)

GENERAL MEETING PROCEDURES - whether the body corporate should be authorised to hold its annual general meeting outside the legislative time limit.

Standard Module, s 66

1. An annual general meeting of the Body Corporate for Varsity Peak held by 31 December 2020 will not be invalid simply because it is held more than three months after the end of body corporate's financial year.

• [1] This application seeks authorisation for the body corporate to hold its annual general meeting (AGM) outside the legislative timeframe.
• [2] The application says the financial year end-date for this scheme is 30 June. On that basis, the body corporate is required to hold its AGM by 30 September each year. The body corporate is seeking to delay the AGM on this occasion because it is awaiting quotes for building rectification and painting works and want to be able to include these costs in the budget. The body corporate wants to be able to hold the AGM by 31 December.
• [3] The question then is whether the body corporate should be authorised to hold its AGM more than three months after the end of the financial year.

• [4] Varsity Peak community titles scheme 32861 is an 16-lot scheme at Varsity Lakes. The community management statement (CMS) shows the Standard Module applies.
• [5] This application was lodged on 14 October 2020 pursuant to a resolution passed at a committee meeting on 30 September.
• [6] An adjudicator may make an order that is just and equitable in the circumstances to resolve a dispute about a claimed or anticipated contravention of the Act or the CMS, or the exercise of rights or powers or performance of duties under the Act or the CMS.[1] I am satisfied that this matter falls within the legislative dispute resolution provisions.[2]

• [7] Section 66 of the Standard Module requires an AGM to be held within three months after the end of each of the scheme's financial years. This time limit exists for a number of reasons, including ensuring accountability and access to information about the operation of the scheme. A body corporate should always endeavour to comply with this timeframe.
• [8] Notwithstanding that, the courts have recognised that the detailed provisions of the regulations make non-compliance almost inevitable from time to time there, and that should not imperil the actions of bodies corporate or their committees where they are taken in good faith.[3]
• [9] In this case, the AGM will up to three months late. That is not desirable, the committee should endeavour to avoid such lengthy delays in future. However, it is now not possible to hold the AGM with the statutory timeframe. On that basis I will make the order sought. While I have allowed the AGM to be held up to 31 December, as requested, I would encourage the committee to try to hold the meeting sooner if possible.

[2] See sections 227, 228, 276 and Schedule 5 of the Act

[3] See Carroll and Ors v Body Corporate for Palm Springs Residences CTS 29467 [2013] QCATA 21 and Wei-Xin Chen v Body Corporate for Wishart Village CTS 19482 (Unreported, District Court of Queensland, Appeal 4080/2000, Bolton J, 29 May 2001)