Question: Our driveway requires major work. At the AGM over half the lots were missing or did not submit a vote. The missing owners were counted as voting YES. Is this correct?
I own a property in Strata. Our central driveway has not been maintained and is in need of serious repair. The only option put forward at the last AGM was for repair work of around $50,000. This could be a lot more if the underground pipes get damaged during the required work.
At the AGM only 6 out of 13 lots were in attendance or submitted a proxy for voting. Because the missing 7 lot owners did not vote, their vote was taken as a yes. This is a major repair and I think should have been voted on separately with all the relevant information supplied to lot owners and giving them a Yes or No option but with the condition that if they do not respond their vote would be taken as a No.
This is the second time this has been presented to the AGM for voting but prior to the AGM I discussed the issue with the Strata Manager and he told me that there was some special condition for this type of issue but he did nothing about it. Please advise if there is some special by-law for this type of case.
Answer: Only those in attendance in person, by proxy or by electronic vote, if applicable, should be counted towards the vote.
Only those in attendance in person, by proxy or by electronic vote, if applicable, should be counted towards the vote.
As per Schedule 1 Section 17 of the Strata Schemes Management Act 2015 the quorum of a general meeting is more than one-quarter of the persons entitled to vote. Not knowing anything further about the financial status of the owners in attendance, for example, it is assumed that 6 out of the 13 lots would indicate that there was likely a quorum for the meeting present.
The works described if the driveway is replaced like for like, would be an ordinary resolution and as per Schedule 2 Section 14 of the Strata Schemes Management Act 2015. This is decided by a majority vote of those in attendance and entitled to vote. If the 6 owners in attendance at the meeting were declared as a quorum, it is the majority of those 6 in attendance.
Those owners not in attendance should have no bearing on the decision being made if they have not submitted a vote. Based on the above sections of the Act and if the meeting was validly called and a majority of owners approved the works, the decision to proceed with the works would be valid.
You will need to consider the individual by-laws that have been adopted and registered for your particular scheme to see if there is anything in regards to your driveway.
This post appears in Strata News #524.
Robert Fothergill
Strata Life
E: Robert@thestratalife.com.au
P: 02 9456 9917
Leave a Reply