…additionally, as matters involving a caretaker agreement (contract) may be taken under a simple majority vote by those present at a General Meeting (incl. by proxy), I don’t understand how this person can effectively control your Scheme with just 40% of the max possible votes.
As both provisions of the Strata Schemes Management Act that you and KWP have referenced do apply, so do the terms of the caretaker’s agreement, so I think your Owners Corporation needs to seek the advice of a lawyer who’s experienced in contract law.