How to make strata meeting resolutions
We explain the different types of strata meeting resolutions and when they are required
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.There are three types of strata meeting resolutions that can be passed, plus another that only comes to play in Victoria:
- Ordinary or general resolutions
- Special resolutions
- Unanimous resolutions or resolutions without dissent
- Interim special resolutions
Ordinary or general resolutions
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.
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 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.
This type of strata meeting resolution is required when voting to:
- Add or alter common property
- Waive interest on strata levy arrears
- Add, amend or repeal strata by-laws or building rules
- Revoke or amend a previous special resolution
- 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
- Alter the unit entitlements for the lots in a strata property and change the aggregate (applicable to New South Wales)
- 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:
- 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 per cent of the total number of lots
- The total contribution schedule lot entitlements of the votes against the motion is not more than 25 per cent 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.
Unanimous resolutions or resolutions without dissent
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.
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
Another type of strata meeting resolution, referred to as an interim special resolution, occasionally comes into play in Victoria. An interim special resolution is a special resolution that receives 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.Having set up the very first strata scheme in Australia back in 1948, we’ve come a long way in our knowledge and experience across a variety of property types. Whether you are new to strata management or an active committee member, we have developed an extensive library of resources to assist you. Click here to download our FREE Community Living guide on committee management. For a consultation to review your current by-laws with the Kemp Peterson team, click here. To find out more about the services we offer, click here for a free strata assessment.