‘Drastic’ plan to wind-up embattled Couran Cove Island Resort body corporate

The ruling body corporate of an embattled Gold Coast island community has a bold plan amid the long-running row over alleged millions in unpaid levies. Read the proposed fix.

The governing body corporate of an embattled Gold Coast island community has put forward a bold plan to appoint an external administrator to itself amid long-running disputes.

The Couran Cove Resort Community Body Corporate has called an extraordinary general meeting for this coming Friday, seeking support for its motion to wind up the existing body corporate scheme and/or apply to appoint a receiver.

A notice for the meeting stated the proposal had been put forward in a bid to “restore services to residents and preserve the assets of the scheme and its members”.

A sign for Couran Cove Island Resort, South Stradbroke Island.

Electricity, water and gas services were disconnected to hundreds of homes at Couran Cove Island Resort, South Stradbroke Island, more than a month ago due to alleged millions in body corporate fees owed.

There are five bodies corporate involved on the island, with the Community Body Corporate governing four subsidiaries – eco, marine, lodges and villas.

The proposed action is being taken in a bid to recover millions of dollars in fees allegedly owed to the Community Body Corporate.

Couran Cove boss Simon Napoli. Picture: Simon Napoli

Couran Cove infrastructure operator Simon Napoli said he hoped for a positive outcome at the upcoming meeting.

“The CBC is making a last-ditch attempt to stop all the litigation between the bodies corporate and have an independent party intervene to resolve the long-running body corporate disputes impacting Couran Cove,” he said.

MBA Lawyers managing partner Clayton Glenister. Picture: Tertius Pickard

Eco body corporate secretary Dave Bowden claimed the upcoming EGM was invalid and the matter would be referred to the Body Corporate Commissioner.

Body corporate law specialist and managing partner of MBA Lawyers, Clayton Glenister, said appointing an external administrator to a body corporate was a rare and “drastic” step.

“I would have thought the more appropriate mechanism to do this is to actually apply to the (Body Corporate) Commissioner’s office for an adjudication application to have an administrator appointed,” he said.

“The only issue with that is the commissioner’s office has, in my experience, been very reluctant to appoint administrators – but they have done it on occasions.”

Mr Glenister said such a move would be expensive and likely result in increased body corporate fees.

Strata Community Association Qld general manager Laura Bos urged all parties involved in Couran Cove to “act rationally and in accordance with the law”.

“We know how much frustration there is on the island and how deeply traumatised many residents are, however we hope that cool heads prevail and that these disputes can be resolved in a fashion which allows all involved to get on with their lives,” Ms Bos said.

Originally published as ‘Drastic’ plan to wind-up embattled Couran Cove Island Resort body corporate