NSW Q&A: Special Resolution Motion

Question: The Act (section 5(b)) 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: 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


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