Administrator appointed for a Body Corporate unable to fix a damaged wall...

A Body Corporate could not agree on how to fix a damaged retaining wall that was in risk of collapse.

Two of its four members took a case to the High Court to have an administrator appointed to take over the decision-making and state who would be responsible for fixing the wall.

The Body Corporate had not been functioning for two years because its four members could not agree on who should be named chairperson. Additionally, they had not held an annual general meeting in over 12 months. Attempts to resolve issues among the owners often led to arguments.

The wall was estimated to cost $70,000 to fix, but the Body Corporate only held $4000 and did not have a Long-Term Maintenance Plan or a Long-Term Maintenance Fund in place. 

Under unit title law a Body Corporate, a creditor of the Body Corporate, or any unit owner may apply to the High Court for an administrator to be appointed if the Body Corporate is unable to carry out its functions.

An administrator takes over the duties of the Body Corporate and may exercise any of its powers such as calling for general meetings and undertaking repair and maintenance work to the development.

An administrator may be appointed for a fixed or indefinite period of time and the administrator’s fees will be met by the Body Corporate’s operating account.

The High Court judge noted that it would be very serious and expensive to appoint an administrator to such a small Body Corporate. However, due to the small chance of the Body Corporate operating as normal, it was a necessary action to take.

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