Jeez some people know how to make life complicated, even if they can’t draft resolutions.
You don’t say whether the EC/OC is suing another party, or whether the OC is the subject of legal action. If it is the latter, you may not have much choice – if you are the respondent in an action then you have to do something.
So, assuming that is not the case and the EC is seeking to take legal action or has taken legal action against another party on behalf of the OC – has there been a previous resolution under which a majority at a general meeting approved the seeking of legal advice or the initiation of legal action?
As of 2011 if an OC wants to seek legal advice or take legal action and the anticipated legal costs exceed $12500 (or $1000 x the number of lots, whichever is the lesser) approval must be obtained at a general meeting. You would expect as part of that approval that a costs agreement with the lawyer would be provided so the anticipated costs are clear.
Given the requirements of the legislation, I don’t think the resolution as drafted is sufficient to obtain approval for the legal action to continue, but it is hard to say because you haven’t given much information.
You should be ok if the majority of the OC wish to discontinue the legal action, presuming you are not the respondent. Perhaps you should remind the EC members that if they don’t comply with the requirements of the legislation as outlined above, they could be held personally liable for the legal costs.