This article discusses how to reverse a strata resolution after an EGM and the process for calling another meeting to overturn it.
Question: A resolution was passed to replace air conditioning units and limit the hours of use. Many owners are not happy. Can we do anything to reverse the decision?
At the EGM, three attendees passed a resolution to replace air conditioning units for a commercial building. The air conditioning units will only run 9 am – 5 pm on weekdays.
I own two commercial lots in the building. I run an after school care business, which mainly runs outside of business hours.
Many of the 25 lot owners are unhappy with the resolution and the ridiculous quoted price. In addition, my levy costs for this installation are disproportionately higher than all other lot owners.
I have tried discussing the matter with our strata management, but they say they are following the law. Can we do anything to reverse the decision?
Answer: If a majority of owners do not agree with the decision, those owners whose unit entitlement are at least one quarter should make a qualified request for the owner corporation to convene another general meeting.
If the hours of operation of the air conditioning units are being changed, it arguably requires a special resolution under section 108 of the Strata Schemes Management Act 2015.
If a majority of owners do not agree with the costs to replace the air conditioning units, or their hours of operation, those owners whose unit entitlement are at least one quarter should make a qualified request for the owner corporation to convene another general meeting. They should request motions on the agenda to overturn the previous decision.
If the motions were resolved by ordinary resolution, an ordinary resolution is required to reverse the decision. Similarly, if the motions were specially resolved, they will require a special resolution to overturn.
Any levies raised for the common property air conditioning units must be raised in accordance with the schedule of unit entitlement.
This post appears in the December 2023 edition of The NSW Strata Magazine.
Matthew Jenkins Bannermans Lawyers E: enquiries@bannermans.com.au P: 02 9929 0226