- This topic has 5 replies, 4 voices, and was last updated 10 years, 5 months ago by .
-
Topic
-
Hi,
I’ve recently received a request via our Strata Manager for an EGM. There are 3 items to be voted on. There is no mention whether the items are an ordinary or special resolution.
Questions:
1) How to I find out whether the items are ordinary or special resolutions? (there is no reference on the information received).
2) How do the resolutions get categorised (what’s the criteria for special vs ordinary)?
If someone could clarify the items below it would be really appreciated too…
In relation to ordinary resolutions:
I’m of the understanding that you need 50% +1 (over half the votes) to effect the change????
In relation to special resolutions:
I’m of the understanding that you need 75% of the votes to effect the change???
Thanks in advance,
Sasha1
-
Replies
-
The Act will specify that some sorts of decisions require a special resolution. If the Act does not say what class of resolution, assume an ordinary resolution. It is not up to the EC or OC to decide. The Act tells you what class of resolution is required.
75% is, I think, not quite pedantically what is required. It is correct in effect most of the time. I think it is actually specified as 1) a majority in favour and 2) fewer than a quarter opposed of those taking part in the meeting, in person or by proxy. In principle you could have 60% of those in the meeting in favour (>50% but <75%), 20% opposed (<25%) and 20% abstaining. In that case I think the motion would pass. If it were 60% in favour and 40% opposed and no-one abstaining it would fail.
That is the logic of how it works in the ACT except that it is fewer than a third opposed rather than a quarter. If NSW is not quite like that someone can correct it!
Yout pretty much on the mark, Peter.
It’s 75 percent of those voting at a general meeting as calculated by unit entitlements (special resolutions always have to be conducted according to UEs).
The 75 percent is the required proportion of the vote, not of those in attendance and certainly not of the total owners. Abstentions don’t count as votes.
So, for example, in a building of 100 units where 60 owners turn up who are elligible to vote (i.e. they have paid their levies) and they all have equal UEs (which is never the case) and 44 of them vote yes and 16 vote no, the motion fails.
But if 44 vote yes and 13 vote no and one abstains, the vote carries. It’s complicated.
Critically, for the original poster, items that require a special resolution have to be shown as such on the agenda issued two weeks before the meeting or the vote doesn’t count. It’s up to the chairman or secretary (advised by the strata manager) to make sure that motions requiring special resolutions are properly signified.
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.
Sasha – to clarify a little further, whilst the NSW Legislation is silent of the subject of to what decisions a special resolution is necessary, so far as I’m aware that method of determining the outcome of a vote applies to Motions about Common Property dealings (e.g. easements, sub-divisions, exclusive use privileges to Owner/s), about adding to or amending the By-Laws of the Plan, about whether to waive the prescribed interest on overdue levies or to allow the prescribed discount for those paid early (both 10%), and about whether to permit changes, alterations, or additions to the Common Property of the Plan by the Owners Corporation (e.g. cement rendering a building) or by individual Owners (e.g. when proposing renovations).
As Jimmy T mentioned (post #3) Agenda Motions on the above need to be worded “THAT the Owners Corporation specially resolves to ………“, and additionally, the Minutes need to clearly show the total unit entitlements (UOE) of those in attendance and entitled to vote (both personally and by proxy), the nature of the vote on each special resolution (e.g. 44 UOE in favour / 13 UOE against), and the outcome of the vote (i.e. 77.2%).
Sasha1 said…… am I correct in assuming that no resolution can be passed even if the other 4 units (2/3rds of the entitlements) vote in favour and we vote against (providing I turn up to the general meetings or return paper votes).
If the Motion is one of those that requires a Special Resolution and you personally vote or your proxy (paper vote) includes instructions about how you want your vote/s to be cast, YES you’re correct.
Be careful how you exercise your votes though, as other Owners can seek Orders in the NSW Civil & Administrative Tribunal to effectively nullify those if Meeting procedures weren’t strictly followed or otherwise in the Local Court if they’re seen to be malicious or to frustrate the Owners Corporation’s efforts to comply with its obligations under the Strata Schemes Management Act; neither process may be successful but aggrieved Owners can cause problems.
- You must be logged in to reply to this topic.