Question: If the committee proposes multiple by-law changes, must each change be listed in a separate motion, or is a single motion for all valid?
Our by-laws are due for updating and amending at the next AGM. When searching the body corporate records, I found a list of around 16 topics I assume are being considered or added.
Our AGM documents have been issued to lot owners. Only one blanket motion lists the by-law changes.
With so many changes proposed, are lot owners given enough information to make an informed decision?
Are there any precedent cases or case law on whether each proposed by-law change should be a separate motion, or whether one motion is sufficient to produce a valid outcome?
In my opinion, this approach fails to give lot owners full disclosure of the changes. How can owners express which changes they agree with and which ones they do not?
I have raised this with the committee but have not received a direct response.
Answer: A motion can validly propose multiple by-law changes at once, but the committee needs to provide owners with clear information to support good decision-making.
There is no issue with presenting a motion that changes the by-laws in bulk.
If you are not happy with that, you can vote no to the proposition. Ultimately, if a majority of other owners vote in favour and the terms of what I presume is a special resolution are met, the motion passes and the by-laws are updated accordingly.
In terms of whether there has been sufficient disclosure of the changes, we can’t say without seeing the documentation. However, I would expect the meeting notice to include a document outlining what the new by-laws would look like if approved. If it’s not, that could be a problem, but this document doesn’t need to be annotated to show every change.
Did the committee engage a lawyer to draft the by-law changes and the motions? Most of the time that’s the case, and if they did, you would expect the legal standards to be adhered to.
The committee should consider whether simply meeting the legal standard for a valid motion is the same as good communication. It may depend on your scheme and the changes you are making, but if you are proposing a broader change to the by-laws, it would be beneficial to outline what this means in a letter or other communication to owners. The committee should expect questions and be prepared to answer them. It’s always better to ensure owners are on board by providing them with clear information.
This post appears in Strata News #753.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924