How to make strata committee meeting decisions

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How to make strata committee meeting decisions

The different types of strata meeting resolutions

A resolution is a formal way in which the strata committee can note decisions that are made by its members and the owners corporation.

Voting ensures that decisions are made fairly and equitably and all owners have a say in the management of the common property and affairs of the owners corporation or body corporate.

Decisions are determined by three types of resolutions that can be passed at strata meetings. We break down each resolution so you can easily understand them and see how they differ:

  1. Ordinary or general resolutions
  2. Special resolutions
  3. Unanimous resolutions or resolutions without dissent
  4. Interim special resolution

1. Ordinary or general resolutions

The most common is an ordinary resolution.

Ordinary resolutions require a simple majority voting in favour of the motion i.e. more than 50 per cent of those owners eligible to vote is present in person or by proxy, casting their vote in favour of the motion. Most decisions of an owners corporation are made by ordinary resolution unless legislation specifies otherwise.

Strata committees make decisions by way of ordinary resolutions. They do not have the authority to decide on matters that require a special or a unanimous resolution.

Examples of decisions made by ordinary resolution:

  • Determining any spending restrictions placed on the strata committee
  • Determining levy contributions
  • Appointing a strata managing agent and determining the delegation of powers.

 

Body corporate voting rules

In Queensland, ordinary resolutions have a slightly different meaning. A motion is passed by ordinary resolution if the votes counted for the motion (“yes” votes) are more than the votes counted against the motion (“no” votes) so there is no requirement to get more than 50 per cent in favour. This is the most common type of general meeting resolution.

 

A majority resolution

A majority resolution is a motion is passed by majority resolution if the votes counted for the motion (“yes” votes) are more than 50% of the lots whose owners are entitled to vote on the motion. Votes must be in writing. Majority resolutions are uncommon.

2. Special resolutions

A special resolution is when no more than 25 per cent of the votes (based on unit entitlement) are cast against a motion.

This simply means that 75% or more of the owners present or voting by proxy, who are entitled to vote at a general meeting, must be in favour of a motion for it to be passed.

Below are situations when a special resolution is required:

  • Adding or altering common property
  • Waiving interest on strata levy arrears
  • Adding, amending or repealing strata by-laws or building rules
  • Revoking or amending a previous special resolution
  • Approving work by a lot owner that affects common property
  • Granting a licence to an owner/occupier to use common property in a particular manner.
  • The transfer or lease of common property
  • Altering the unit entitlements for the lots in a strata property and changing the aggregate (applicable to New South Wales)
  • Entering into an agreement with council in relation to parking enforcement.

If a voter abstains from voting, that is not included in the count of votes.

 

In Queensland

A motion is passed by special resolution only if:

  • At least two-thirds of the votes cast are in favour of the motion
  • The number of votes against the motion is not more than 25% of the total number of lots
  • The total contribution schedule lot entitlementsof the votes against the motion is not more than 25% of the total contribution schedule lot entitlements for all lots in the strata property.

All three conditions must be met for the motion to pass by special resolution. If one of the conditions is not met the motion will fail.

3. Unanimous resolutions or resolutions without dissent

At times meeting outcomes or resolutions are passed where there are no “no” votes cast against the motion.

Unanimous resolutions are used for fundamental decisions such as selling common property, buying land, or altering boundaries, lot entitlement and lot liability. This does not require an owner to be financial to cast a vote.

Below are situations when a unanimous resolution is required:

  • A proposal to sell or dispose of part of common property
  • Changes to a contribution schedule lot entitlements and lot liabilities (in Queensland and Victoria)
  • To revoke or amend a previous unanimous resolution of the owners corporation
  • Distribution of surplus money in administrative or capital works/maintenance funds
  • An order from a Tribunal that has the effect of a by-law or building rule can only be amended or repealed with a unanimous resolution of the owners corporation.

 

4. Interim special resolution 

In Victoria

In Victoria, there is also an interim special resolution. An interim resolution is a special resolution that received at least 50 per cent of total votes and where no more than 25 per cent voted against it. It can be acted on as if it was a special resolution if a notice is sent to all lot owners within 14 days of the meeting, and within 29 days of the meeting, the secretary has not received a petition by owners or proxies representing 25 per cent of the votes against the resolution.


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