I’ve just received minutes of the AGM showing yearly fees will increase from $2000 to $3000 annually. Only 50% of owners voted for the increase. Is a quorum of 80% required for the meeting to proceed?
To achieve a quorum at an AGM, the Act states that at least 50% of the total number of lots or 50% of the total lot entitlement must be present in person or by proxy.
No, to achieve a quorum at an AGM, Section 77 of the Owners Corporations Act 2006 states that at least 50% of the total number of lots or 50% of the total lot entitlement must be present in person or by proxy. You have stated that 50% of owners voted for the increase, so I will assume that a quorum was present at the AGM.
As the setting of annual fees is done at the AGM, the decision to increase the yearly fees from $2,000 per annum to $3,000 per annum could unlikely be challenged if a quorum has been achieved with at least half of the owners based on lot entitlements present at the meeting. In addition, if a majority of those present at the meeting voted in favour of the increase, in my view, the owners corporation has approved the fee increase.
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