NSW: Q&A Proxies, Voting & Quorum Requirements for the AGM
Question: Can a vote on a decision be raised after a decision and expense has occurred? Under what circumstances does a decision require a special resolution? And who decides a special resolution is appropriate?
Answer: Once an expense has been incurred and paid for it is difficult to reverse
Once an expense has been incurred and paid for it is difficult to reverse and usually, the only decision that would arise, is a decision to ratify the incurring of an expense.
The strata legislation dictates which decisions must be made by special resolution. Examples of decisions requiring a special resolution include by-laws for owners carrying major renovations, management by-laws, exclusive use of common property by-laws, leasing of the common property, creation of easements, strata plans of subdivision, alterations to the common property.
Question: As a special resolution is carried if “not more than 25% of the value of the votes cast are against the resolution”, can I confirm that “not more than 25% against” is different from “75% or more in favour”?
The Act says a special resolution is carried if “not more than 25% of the value of the votes cast are against the resolution”.
I would like to confirm that if 4 people (with equal lot entitlements) cast votes with 3 in favour and 1 against, the special resolution motion is lost.
In other words, “not more than 25% against” is different from “75% or more in favour”. The reasoning as that 25% is not more than 25%.
Answer: Not more than 25% against is a lower threshold than at least 75%.
Your reasoning is correct – not more than 25% against is a lower threshold than at least 75% as in company law.
In your case, not more than 25% voted against, (only 25% voted against) therefore the motion carries.
For the full question and our detailed response, visit the original publication at Look Up Strata.
Do you have a question relating to your property or development? Contact us!
Please note that this article is provided for information purposes only and is not a substitute for professional legal advice.
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