QLD: What approval is needed for major strata building upgrades?

Question: We’d like to replace all windows. What type of motion will be required and how many votes are needed for the motion to be passed?

Our committee is working on a proposal to upgrade the exterior of the building by replacing all windows, which will incur a cost of several million dollars. There are 66 apartments. The work is NOT essential and window replacement for common use areas is already provided for in the Sinking Fund Forecast.

What type of motion will be required and how many votes are needed for the motion to be passed?

Answer: The type of approval required will depend on the cost of the works.

The type of approval required will depend on the cost of the works.

There are three improvement limits that apply in the standard and accommodation modules:

	Financial limit	Resolution Required
Basic Limit	$200 times the number of lots or up to $300 times the number of lots if the committees spending limit has been increased.	Committee resolution at a committee meeting.
Standard Limit	Up to $2000 times the number of lots in the scheme	Ordinary resolution at a general meeting.
Other	More than $2000 times the number of lots	Special resolution at a general meeting.

In this case, there are 66 lots so if the cost of the project exceeds $132,000, which you suggest it does, a special resolution at a general meeting would be required.

A special resolution requires that the motion is only passed if:

At least two-thirds of the votes cast are in favour of the motion

The number of votes against the motion is not more than 25 per cent of the total number of lots

The total contribution schedule lot entitlements of the votes against the motion is not more than 25 per cent of the total contribution schedule lot entitlements for all lots in the scheme.

All three conditions must be met for the motion to pass.

Depending on your entitlements and number of people attending the meeting, that may need some mathematical configuration to work out but that is the formula to follow. Your body corporate manager should be able to calculate these for you at the meeting – although sometimes this takes some time and careful checking.

You also ask how many votes would be required. A standard quorum requirement would be 25 per cent of owners, but plans have had the capacity to change this since March this year so you should check the exact number with your body corporate manager.

Check the BCCM website for more information on this subject: Improving common property and lots.

This post appears in the November 2021 edition of The QLD Strata Magazine.

William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924