Voting on a Special Resolution

Boy, that could make it really hard to get a special resolution up. In the ACT it is defined differently and a bit easier to pass. Here a special resolution requires both a) a majority in favour, and b) fewer than 1/3 opposed, of those present and entitled to vote, in person or by proxy. Thus, in our case, we have 105 owners but 5 neither show up nor put in a proxy vote, so 100 people are ‘present’ at the meeting, 51 vote yes, 33 vote no, and the rest abstain and the motion would pass (33 is less than a third of 100). On the other hand, if 21 don’t show up or put in a proxy vote, there would be 84 people at the meeting, 51 vote yes, 33 vote no, it would fail (33 is more than a third of 84). The proxy/absentee voting forms we use have yes/no/abstain options on them for each motion because it is quite possible that a member would want to vote yes or no on some motions but abstain on others, perhaps not caring either way, or perhaps not objecting strongly enough to want to prevent a motion passing if a majority support it.

I think that NSW is harder for advocates of a Yes vote/easier for No advocates all round. If you want to get your special resolution passed and there will be 25 No votes you need to get >75 Yes votes to win. In the ACT if there will be 25 No votes you need >25 Yes votes and >50 taking part in the meeting to win.

A few years ago we encouraged members to take part in a vote, even if they were ambivalent, even if they would be formally included in the meeting but then abstain. Like on many issues, every person in the minority who opposed the proposal was going to vote. Others whose support for the proposal was less than passionate could not be counted on to show up. Then there were a few who were happy to go with the majority either way and very unlikely to take part. Those opposing were outraged at the tactic of encouraging members to take part in the democratic process! The vote went 51 yes, 34 No, 3 Abstain. 34/88 is >1/3 so the motion failed.

“ We must bear in mind, then, that there is nothing more difficult and dangerous, or more doubtful of success, than an attempt to introduce a new order of things in any state.  For the innovator has for enemies all those who derived advantages from the old order of things, whilst those who expect to be benefited by the new institutions will be but lukewarm defenders.  This indifference arises in part from fear of their adversaries who were favoured by the existing laws, and partly from the incredulity of men who have no faith in anything new that is not the result of well-established experience.  Hence it is that, whenever the opponents of the new order of things have the opportunity to attack it, they will do it with the zeal of partisans, whilst the others defend it but feebly, so that it is dangerous to rely upon the latter.”

Niccolò Machiavelli
The Prince

The proposal was a complete ‘no brainer’ good idea and the ACT Unit Titles Act was under review shortly after.  The Act was amended, in part due to our experience. Since 31st March the same sort of proposal only requires an ordinary resolution. So we put a revised version of the same proposal to a meeting two weeks ago. This time it got up 77:13 (and 3 abstains that didn’t matter because it was an ordinary resolution this time).