AGM Special Resolutions (NSW)

@kiwipaul said:
In QLD changing the exterior color of a building has been considered an alteration to common property and so requires a SR (an interpretation I think is crazy).

Agreeing to a motion without any quotes whatsoever is giving the people who proposed this motion (EC?) virtually a blank cheque to do whatever they like and all owners will have to foot the bill.

At the very least at the AGM a max spending limit should be added to the motion to limit your expenditure. If cost (or quote or estimate) goes beyond this limit EC have to come back to owners for further approval.

Ideally you should have at least 2 detailed quotes showing what is going to be done and the cost before you vote on the item and you should advise everybody before the AGM to vote AGAINST the motion unless quotes are supplied.

Yes, these special resolutions are submitted by the EC. We know painting is involved as it was mentioned in a brief report by a colour consultant annexed to the agenda. Silver metal sculptures, signage, tiling were also mentioned however there is no coherent plan or proposal in evidence. Peasant owners are being told that “all will be revealed at the AGM; and voted on”.

I agree that it is asking for a blank cheque unless a reasonably firm proposal with indicative pricing / quotes is provided.

As the EC resolutions are at the very least premature and ill considered, would it be reasonable to move to attempt to defer these special motions and give time for owners to have a look and input views before ‘purchasing’. Otherwise, we are being steamrolled!

@Whale said:
Tracer – as others have said, a Special Resolution is not be required in order for the Owners Corporation (O/C) to vote on painting of the Common Property, but if your Executive Committee (E/C) is as you advised proposing “silver metal sculptures, signage, tiling” and those items are not there now, then they’re considered additions and /or alterations and/or new structures on the Common Property, and the O/C does need to vote on those by way of the Special Resolution as proposed [NSW Strata Schemes Management Act (SCMA); Cl.65A].

So you have a few options:

• Obviously the paint’s existing, and if everything else now proposed to be updated (i.e. sculptures et al) is just replacing something existing at the same locations, then a vote by a simple majority can decide whether the Motion is passed or defeated.
• If the sculptures etc are additions to what’s there now, or in different locations, then a vote by >25% of those in attendance at the Meeting, both personally and by proxy, can defeat the Special Resolution Motion or amend it to any extent that does not alter the intent of what’s proposed – and as that’s for the O/C to comply with its obligation to “properly maintain its Common Property” (SCMA; Cl.62), the intent’s pretty broad and there’s therefore ample scope for complying amendments!
• If like-minded Owners want to take a more moderate approach than to defeat the Motion (as you suggest), then consider it as put (i.e. as a Special Resolution) and >25% of those could then vote to defer any decision at all until such time as the E/C comes back with more details, obtains additional quotations, or as you suggest simply gives Owners some time to receive and contemplate the detail of the information that’s intended to be provided at the Meeting. Bear in mind of course that another General Meeting will need to convened to make a decision once everyone’s contemplated and had their input.

Lastly, if your Plan has >100 Lots and the expenditure proposed under the Motion exceeds $30,000 then a minimum two (2) quotations is mandatory under the Regulation (2010) to the SCMA, and, if you want to achieve your desired outcome then you’ll need to do some lobbying between now and the Meeting to get ≥25% on-side; that’s calculated by unit entitlement by the way, not by Lot ownership.

Thanks for your advice Whale etall – very frustrating when an EC behaves more like a secret society or tribal elite than an aware and reasonable group of owners. If you are fortunate enough to have a sensible and responsible EC, they are gold!