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Strata meeting resolutions, which are essentially a decision made during a strata meeting, can generally only be passed after committee members and/or the owners corporation vote on the topic or motion question.
Voting ensures decisions are made fairly and equitably, and all owners and committee members have a say in the management of the strata property.
When it comes to community living, the owners corporation or body corporate is usually responsible for maintaining common property. In contrast, property owners are generally obligated to preserve and manage their lot and the facilities within its boundaries. While this seems simple enough, issues often arise due to the complicated nature of the division of property and responsibility.
Ordinary resolutions are perhaps the most common type of strata meeting resolutions. They require a simple majority voting in favour of the motion. This means more than 50 per cent of owners eligible to vote and present in person or by proxy must cast their vote in favour of the motion. Most owners corporation 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 include:
Spending restrictions placed on the strata committee
Levy contributions
The appointment of a strata managing agent and the delegation of powers.
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 is a motion is passed by majority resolution if the votes counted for the motion (“yes” votes) are more than 50 per cent of the lots whose owners are entitled to vote on the motion. Votes must also be in writing. Majority resolutions are uncommon.
A special resolution is a type of strata meeting resolution that can only be passed if no more than 25 per cent of the votes (based on unit entitlement) are cast against a motion.
This simply means that 75 per cent 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.
Add or alter common property
Waive interest on strata levy arrears
Revoke or amend a previous special resolution
Distribution of surplus money in administrative or capital works/maintenance funds
Add, amend or repeal strata by-laws or building rules
Approve work that affects common property
Grant a licence to an owner/occupier to use common property in a particular manner
Transfer or lease common property
Enter into an agreement with local council in relation to parking enforcement.
If a voter abstains from voting, that is not included in the count of votes.
A motion is passed by special resolution only if:
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.
At times, meeting outcomes or resolutions are passed where there are no votes cast against the motion. This type of strata meeting resolution is called a unanimous resolution.
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.
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.
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