ACT: How many votes are required for a special resolution to pass?

Question: What is the number of votes required for a special resolution to pass?

What is the number of votes required for a special resolution to pass? Is it two thirds plus one to be carried. In small developments where the number of units is not divisible by 3, how should this be calculated? Is it rounded up or down? 16 units (10.66) is 10+1=11 or 11 +1=12? 17 units (11.33) is 11+1=12 or 12+1=13?

What are the requirements for the calculation of special resolutions now that special privileges over common property in the ACT can be approved with a special resolution and not an unopposed resolution. The new legislation also changes special resolution from 75% to 2/3. We would appreciate clarification to avoid an error on this important issue.

Answer: In order for a motion to pass, there must be at least 1 vote cast in favour of the motion and not more than ¼ of the total number of votes can be cast against the motion.

The requirements to pass a Special Resolution are are explained in Schedule 3 General meetings, 3.16 Special resolutions copied below;

3.16 Special resolutions

1. For an owners corporation with more than 3 members, the requirements for passing a special resolution at a general meeting are that—
   
   1. unless a poll is taken—
      
      1. the number of votes cast in favour of the resolution is greater than the number of votes cast against it; and
      2. the votes cast against the resolution number not more than 1/4 of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes); or
   2. on a poll—
      
      1. the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it; and
      2. the voting value of votes cast against the resolution is not more than 1/4 of the voting value of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes).
2. For an owners corporation with 3 members, the requirements for passing a special resolution at a general meeting are that—
   
   1. unless a poll is taken—
      
      1. the number of votes cast in favour of the resolution is greater than the number of votes cast against it; and
      2. the votes cast against the resolution number less than 1/3 of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes); or
   2. on a poll—
      
      1. the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it; and
      2. the voting value of votes cast against the resolution is less than 1/3 of the voting value of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes).
3. For an owners corporation with 1 or 2 members, the requirements for passing a special resolution at a general meeting are that—

   1. no votes are cast against the resolution; and
   2. at least 1 vote is cast in favour of the resolution.

Notes for s (3)—owners corporations with 1 or 2 members

1. If the owners corporation has 2 members, both must be present to make up a quorum for consideration of the resolution (see s 3.12), unless either is not entitled to vote on the resolution (see s 3.20).
2. An abstention for any unit does not in itself prevent a special resolution from being passed, if at least 1 vote is cast in favour of the resolution.
3. A vote may be cast for a unit on a special resolution even if an amount owing to the owners corporation remains unpaid (see s 3.20 (3)).

So, in order for a motion to pass, there must be at least 1 vote cast in favour of the motion and not more than ¼ of the total number of votes can be cast against the motion. A vote cannot be represented by a partial representative, so any partial number would need to be rounded up to the next whole number.

Nina Cannell
Signature Strata
E: nina@signaturestrata.com.au
P: 02 6185 0347