The Queensland Government has announced a review into the state’s property laws including the Body Corporate Community and Management Act 1997 and other community titles legislation including body corporate governance issues.
The review period ends on the 22nd of February.
This follows on the heels of the Owners Corporation changes enacted by the New South Wales parliament at the end of 2015.
SSKB – Strata Managers directors Tim Sheehan and Paul Wood, recognised industry experts have reviewed the discussion paper and make a number of observations which will be featured here on the SSKB blog.
As the law currently stands in Queensland, there is one important date for a body corporate to remember – the anniversary of the first AGM.
From this date, every subsequent AGM and Financial Year is dictated.
While this may not form a particular hardship for the annual general meeting (at which the body corporate elects its committee), it can cause challenges for the financial year – particularly if it doesn’t conveniently fall on June 30 – Australia’s end of financial year.
There is already a mechanism to change the financial year for a body corporate but it can be a lengthy and expensive process.
To do this, the body corporate must pass a resolution at a general meeting supporting an application to an adjudicator to change the financial year end date. The order of the adjudicator may be made as a declaratory order.
SSKB supports the idea of allowing a body corporate to change its financial year end conveniently. An ordinary resolution would be the most convenient.
The AGM must be held within three months of the end of the financial year and the Property Law Review discussion paper asks:
Should bodies corporate have the ability to set the date of the AGM, regardless of the end of the financial year for the scheme, without requiring an adjudicator’s order changing the financial year for the scheme?
In our experience, the answer to this question is a resounding no.