ACT: Q&A Can a Special Resolution be Challenged?

This question from an ACT Lot Owner about whether you can challenge a special resolution has been answered by Jan Browne, Whittles Strata Partners.

Question: Can a special resolution be challenged? Our Committee believes they can use funds for anything they like as long as they have the votes. Why should I contribute if improvements offer me no advantage?

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Can a special resolution be challenged?

I’m in a class B unit title.

At our recent meeting, the members reacted to my complaints about using levies and sinking funds on “private” grounds by putting forward a motion to use funds to clear trees and fix concrete on private areas and common areas.

They acknowledge that I was right that the bordering fence was on private property.

They are stating that they can use the levies and sinking funds for whatever they like, including improving and maintaining private property because they have enough votes.

Improvements and maintenance to these areas offer me no advantage and I don’t see why I should have to contribute.

Section 24 of the Unit Title Management Act states “all building”. Since not all building on the complex have bordering fence and trees, can they use this?

Are special resolutions challengeable?

Answer: If an owner feels that the resolution of the Owners Corporation is unfair or unreasonable they have the ability to appeal.

The owner is correct in the working of section 24. See below wording. If an owner feels that the resolution of the Owners Corporation is unfair or unreasonable they have the ability to appeal the resolution through ACAT under section 125.

The motion would have to be put to a general meeting in the first instance and note by Special Resolution. The owner would note the properly passed resolution as unreasonable.

Division 3.3 Maintenance and other services

24 Maintenance obligations

(1) An owners corporation for a units plan must maintain the following:

(g) as authorised by a special resolution (if any)—all buildings on all class B units on the units plan.

Example—par (g)

a special resolution authorising the owners corporation to paint all buildings on the class B units and to carry out roofing and structural repairs to all class B units, but excluding responsibility for internal painting and minor repairs of class B units.

Note An example is part of the Act, is not exhaustive and may extend, but does not limit, the meaning of the provision in which it appears (see Legislation Act, s 126 and s 132).
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This post appears in Strata News #262.

Read Next:

• ACT: Q&A Owners Corporation Reimbursed for Executive Committee Spending?
• ACT: Q&A Why pay strata maintenance fees for facilities we don’t use?

Jan Browne
Whittles Strata Partners
P: 02 6132 4450
E: jan@whittlesstratapartners.com.au

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

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