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I own one lot in a 2 lot 2 owner strata scheme. Unit entitlements are 60/40. In our scheme, for an ordinary resolution, does the majority rule apply if, at an Owners Corporation meeting, a poll is called before the vote ?
In particular, where there is strong differences of opinion between the 2 owners as to necessity, timing or cost of capital works to be included in the 10 year Capital Works Fund Plan, will the majority unit entitlement prevail? If yes, what recourse does the minority unit entitlement holder have, if any, to object to the resolution?
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Did you find an answer to this? Thanks
Thanks for reminding me that this had not been answered.
Basically, the owner with the largest unit entitlement has the most votes and they would prevail except in issues that require a special resolution – where the votes must be unanimous – or where they result would be illegal.
For instance, if the majority owner pushed through a decision that benefitted them, at the expense of a minority owner, that could be considered a fraud against the minority. One example would be if the majority owner gave themselves exclusive rights on visitor parking, ot took over common ptoperty to build a deck.
That’s why so many small scheme disputes end up at NCAT, where schemes can be ordered to rescind or enact decisions that are palpably unfair..
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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