Owners’ corporations make decisions using three types of resolutions: Ordinary, Special, and Unanimous Resolutions.
Vote counting can be done in two ways: through lots or lot entitlement. Ordinary resolutions are decided by lots, whether at a general meeting or via a ballot, unless an owner requests a poll vote. A poll vote can be requested by any owner and can be done immediately after the initial vote, which cancels out the previous lot-based vote. On the other hand, special resolutions are always determined based on lot entitlement.
To pass an Ordinary Resolution, a minimum of 50% of owners need to vote in favour and less than 50% voting against. If this result is not achieved due to insufficient votes, an interim ordinary resolution can be passed, which can be challenged by owners within 29 days of receiving the minutes. If less than 25% of owners vote against the interim resolution, it is considered to have passed. However, if 25% or more of owners vote against, the matter is reconsidered in another general meeting.
Decisions that require an Ordinary Resolution include:
- Appointing a committee
- Approving the Annual Financial Statement and the previous year’s AGM minutes
- Approving a budget
Special Resolutions need a minimum of 75% of owners to vote in favour. In the event that this threshold is not met due to some owners not voting, an interim special resolution can be passed with 50% in favor and no more than 25% voting against. Owners have 29 days to challenge the interim special resolution. If petitions representing 25% of lots or lot entitlement are not received within the 29-day period, the Special Resolution is deemed to have passed.
Decisions which require a Special Resolution include:
- Leasing or licensing common land
- The Owners Corporation obtaining a lease or license of land from other parties
- Providing a service or entering into an agreement to provide a service to lot owners, occupiers, or the public
- Raising a levy that is more than twice the current annual fees
- Obtaining a loan for an amount higher than the annual budget
Making or Amending Registered Rules
Unanimous Resolutions require 100% of owners to vote in favour to pass.
Decisions that require a Unanimous Resolution include:
- Selling OC land
- Buying land
- Altering boundaries
- Changing lot entitlement or lot liability
If you have any questions about how these rules apply to your building, feel free to contact our friendly and knowledgeable team.