Question: To enhance the security of our common property pool, the committee has proposed the installation of a password-coded pool gate. Everyone must retain access. For approval, which resolution is required?
Answer: A committee cannot decide to change rights, privileges or obligations of owners. Such a decision should be made by a general meeting.
The committee cannot make a decision that changes the rights, privileges or obligations of the owners of lots in the scheme.
In Reef Terraces (Two) [2022] QBCCMCmr 433 the adjudicator provides (our emphasis):
Relevantly, a committee cannot decide to change rights, privileges or obligations of owners. Such a decision should be made by a general meeting.
… While I have found that the Written Agreement was terminated in February 2022 by ordinary resolution of an EGM, it should be noted that as an owner of the respondent’s common property as a tenant in common, the applicant also enjoys a general right to make reasonable use of that common property. That right generally does not depend upon gaining the permission of the body corporate and arises independently of any shared facility agreement.
In my view the decision to change the security gate locks from coded locks to security key locks, and issue one security key to the owner of each lot in Reef 2, is a restricted issue for the committee.
If there is presently no security code required to access the pool, then a decision to implement a code would change the rights, privileges and obligations of lot owners and amount to a restricted issue for the committee. The decision to implement a security code would need to be authorised by ordinary resolution at a general meeting.
Any improvement works required to install the new password coded pool gate would also need to be approved by the body corporate. The threshold of approval for common property improvements made by the body corporate are determined by the total cost of the project.
If:
- the spending is less than $300 for each lot in the scheme – the committee can authorise the spending (but only if the committee spending limit is not reached);
- the spending is less than $2,000 for each lot in the scheme – an ordinary resolution can authorise the spending but only once each financial year;
- the spending is more than $2,000 for each lot in the scheme or the body corporate has already passed an ordinary resolution to authorise an improvement – a special resolution is required.
A second and competing quotation may also be required if the costs exceed the relevant limit for major spending.
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