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I would like some advice on Resolutions. Our building contains eight lots, all of equal worth in terms of voting rights. At our upcoming AGM we will be voting on various issues.
My understanding is an Ordinary Resolution requires 50% of the vote in favour to pass, (so in our case four votes in favour out of the eight) a Special Resolution requires 75% (six votes in favour from eight) and a Unanimous Resolution 100% (eight votes in favour from eight)
My question is how is it determined as to which issues requires which level of resolution?
In our particular case for example, what level of resolution is required for our building to do the following?
1. Introduce a bylaw preventing smoking on all common property and balconies.
2. Introduce a bylaw preventing smoking in all areas of the building including common property, balconies and within private lots.
3. Rescind a special bylaw introduced about 15 years ago which currently totally prevents the keeping of animals, and thereby reverting our buildings ‘Keeping of Animals’ bylaw to the standard one where the keeping of animals requires permission but ‘permission cannot be unreasonably refused’?
Also, what happens if some lot owners dont vote at all, either by not attending the AGM in person or by proxy? For example, if two owners don’t bother to vote does the 75% of the vote required to pass a special resolution still require 6 votes from the eight to be in favour, (ie the six remaining owners all have to vote yes) or does it then become 75% of those 6 votes remaining which means 4.5 votes out of 6, which I imagine would be rounded up to 5 out of 6 which is a considerably higher percentage (83%) than than the original 75% required which would disadvantage those owners trying to get the resolutions passed..
Thanks in advance!
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Each of the items that you have listed involves Special By-Laws, and requires a Special Resolution at your General Meeting where no more than 25% of those Proprietors in attendance (personally or by proxy) vote against the Motion.
I’m a non-smoker, but I’d urge you not to become too caught up in the recent publicity about non-smoking By-Laws, particularly as I seriously doubt that an Owners Corporation can create a Special By-Law that prevents residents from smoking inside their Lots.
In any event, remember that even if passed, none of the items mentioned in your post has any legal standing unless each is properly Registered on the Title of your Plan.
Best of luck!
With the caveat that I am in the ACT, I would expect that an ordinary resolution is >50%, not just 50%, so in your case that would be 5 of 8 if all take part in the meeting, 4 of 6 or 7 if 1 or 2 don’t take part (in person or by proxy), 3 out of 4 if half your members don’t take part and so on.
As all your units have the same value a poll vote where votes are weighted by unit entitlements would make no difference.
A recent discussion on ‘voting on a special resolution’ might be relevant here.
Again with the caveat that I am not in NSW, I think a special resolution (which you need for a by-law) is also based on whoever takes part. If a few members do not show up or put in a proxy/absentee vote then the vote would be based on 75% of the 5, 6 or 7 members who do take part.
I assume that (like the ACT) a bylaw in NSW is subordinate to the Strata Act and other legislation. So you could only ban smoking (or anything else) if there is not some other law preventing you from banning it. I would think you would not have a problem banning it on the common property but within units might be harder to enforce or defend. I would be pointing out to owners who might not feel strongly about the issue that their unit value is likely to be greater rather than less if they could sell their property as part of a non-smoking building.
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