NSW: Do majority unit entitlements decide a poll vote?

Question: What are the voting rights of a majority lot owner when a poll vote is called at an Owners Corporation meeting?

I own one lot in a duplex strata scheme and hold 60% of the unit entitlements.

In our scheme, for an ordinary resolution, does the majority rule apply if a poll is called at an Owners Corporation meeting? In particular, where there are strong differences of opinion as to the necessity/timing of capital works to be included in the CWFP will the majority prevail?

If yes, what recourse does the minority unit entitlement holder have, if any, to object to the resolution?

Answer: As with a lot of things in strata management the majority rules

As with a lot of things in strata management the majority rules and as per Schedule 1, Section 14 of the Strata schemes Management Act 2015 all motions are to be voted on by simple majority with each person having one vote.

However as you have stated if a poll vote is called by a person entitled to do so then the voting value of the vote is equal to the unit entitlements of that lot. So with 60% of unit entitlements that would be a majority.

As detailed on Section 14(4), below for ease of reference, a poll can be demanded immediately before or after a vote is taken.

If the minority unit entitlement owner does not agree with a decision, they always have the right to apply for Mediation Services through NSW Fair Trading and subsequently for consideration at the NSW Civil and Administrative Tribunal if an agreement cannot be reached at mediation.

STRATA SCHEMES MANAGEMENT ACT 2015 – SCHEDULE 1

14 Decisions at meetings

1. Simple majority vote to generally apply: A motion put to a meeting, or an election of officers of the owners corporation or members of the strata committee, is to be decided according to a majority in number of the votes cast for and against the motion with each person having one vote for each lot in respect of which the person is entitled to vote.
2. Vote of original owner who owns more than half of lots to be reduced: For the purposes of determining an election for officers of the owners corporation or members of the strata committee or appointing a strata managing agent (other than in the case of a poll), if the total unit entitlement of lots of the original owner is not less than half of the aggregate unit entitlement, the value of the vote in respect of the lots held by the original owner is taken to be reduced by two-thirds (ignoring any fraction).
3. Value of votes to apply for poll: If a poll is demanded by a person present and entitled to vote on a motion or for the election of officers of the owners corporation or members of the strata committee at the meeting, the motion is to be decided according to the value of the votes cast for and against the motion and the value of a vote cast by a person entitled to vote in respect of a lot is equal to the unit entitlement of that lot. However, the value of the vote of an original owner is to be calculated in the same way as for a special resolution.
   
   Note— Section 5 sets out the manner in which a special resolution is determined.
4. Polls: A poll may be demanded immediately before or after a vote decided by a majority in number has been taken. The demand for a poll may be withdrawn by the person who made it

This post appears in Strata News #497.

Robert Fothergill
Strata Life
E: Robert@thestratalife.com.au
P: 02 9456 9917