› Flat Chat Strata Forum › By-laws and outlaws › Voting for by-law at EGM › Current Page
Scottie is spot on, as usual. The law defines a speial resolution as “a resolution which is passed at a duly convened general meeting of an owners corporation and against which not more than one-quarter in value … of votes is cast.
An abstention is a non-vote and is therefore not counted. It is not a “vote cast” it’s a decision not to vote. By the way, special resolutions have to be conducted as poll votes, based on unit entitlelemnets, rtaher than a show of hands.
Just as an example, say owners who have Unit Entitlements totalling 100 turn up at a meeting.
Owners with UEs worth 48 vote in favour and other owners with UEs worth 17 vote no, with the owners holding the remaining 45 votes abstaining.
The motion would fail because more than 25 percent of the VOTES CAST were against it, even though it was only 17 percent of the Unit Entitlements. (Obviously, unit entitlements tend to be in the thousands rather than 100, but I’m trying to keep it simple.)
In simple terms, far from being a yes vote, non-votes or abstentions usually favour the “no change” group as they reduce the voting threshold. That’s why you have to get everyone informed and involved before a special resolution vote.
It’s also why owners have to be very careful about the by-laws they “just go along with” just to keep committee members or a vocal minority happy. A powerful minority can railroad an owners corp into making bad decisions then make it very hard to rescind them once the damage is done.