cassamcgann – I’m afraid that’s correct if the offending owner knows their stuff!
To explain…. whilst a simple resolution (i.e. >50% in favour by a show of hands) by those entitled to vote incl. by proxy at your Extraordinary General Meeting is all that’s required for the Motion to issue a Notice to Comply (with a by-law) to pass, conversely if the offending owner knows their stuff and requests a “poll vote” [i.e. a vote determined by units of entitlement (UOE)] then a vote against by them, holding the majority UOE, is all that’s required for that Motion to fail.
A special resolution (i.e. >75% in favour by UOE) is not required, and in your circumstances would make no difference to the outcome.
However…. you do have two (2) further options:
1) If you have a Strata Manager who’s not influenced by the majority owner, and their Agency Agreement with the Owners Corporation delegates the function of issuing these Notices to them, then a formal request to the Strata Manager for them to exercise that delegation, signed by the complainant and the other two (2) owners, would be sufficient for them to do so. Ref Sect 45 and in particular Cl. 3
2) Record the details of the vote on issuing the Notice in the Minutes of the General Meeting, and then apply for Mediation of what would then amount to a dispute between the three (3) owners and the Owners Corporation over it refusing to properly operate and administer the Scheme, and specifically by it not enforcing its by-laws. Ref Sect 138 Cl. 1 & 2(a).
There are two (2) options for Mediation as the compulsory first step to resolving the dispute, the first is with the Community Justice Centre and the second is with the NSW Dept. of Fair Trading.
In order to assist with resolution of the dispute should it go to Adjudication, you and the other owners should make known your planned course of further action prior to the commencement of the Meeting should the Motion fail as you anticipate, and as part of the minuted proceedings I’d also give the owner concerned an opportunity to voluntarily comply with the Scheme’s By-Laws.
As you’re new to Strata, I’d suggest you also read THIS excellent publication from the NSW Dept. of Fair Trading.
Good luck, and welcome to Strata Living.