Re: multiple unit purchases reducing the voting power in a small apartment block

Chatterbox – Something that is worth having in the back of your mind is that although you may be in a ‘minority’ it is unlawful for the ‘majority’ to wield their power in such a way that is fraudulent, or is actually oppressive, or is motivated by personal gain, or by acting in bad faith. The legal term is “fraud on the minority” or “fraud on a power”.

The New South Wales Court of Appeal has recognised this doctrine of “fraud on a power” as being of general application and, specifically, as applicable to bodies corporate under the Strata Titles Act of New South Wales.

Case law in NSW where “fraud on the minority” or “fraud on a power” has been used in relation to strata is here: 

https://www.watsonandwatson.com.au/document-63/strata-law-is-the-exclusion-of-lot-owners-from-the-use-of-common-property-legal-legal

and Houghton & Anor v Immer (No. 155) Pty Ltd (1997) 44 NSWLR 46,

with a further clarification in Part 3 of this document:

https://www.tved.net.au/index.cfm?SimpleDisplay=PaperDisplay.cfm&PaperDisplay=https://www.tved.net.au/PublicPapers/September_2009,_Sound_Education_in_Law,_The_Rights___Obligations_of_Lot_Owners___Bodies_Corporate___Recent_Developments.html