QLD: What is required for a special resolution to pass in a strata scheme?

Question: What are the requirements for a special motion to be accepted? Is it 75% of votes counted or 75% of lot owners eligible to vote?

What are the requirements for a special motion to be accepted? Is it 75% of votes counted or 75% of lot owners eligible to vote?

A motion submitted at an AGM comprises several clauses, and one of those clauses requires a motion without dissent, i.e. on change to common property. If one vote is received against that motion, is the motion defeated in its entirety?

Answer: Consider each clause individually rather than trying to work it out all at once.

The instructions for voting on special resolutions are a regular source of headaches and errors regarding close votes.

However, they are what they are and, if followed correctly, are definitive.

As per the BCCM website: General meeting resolutions

A motion is passed by special resolution if:

• at least two-thirds of the votes cast are in favour of the motion
• the number of votes counted against the motion are not more than 25% of the number of lots included in the scheme
• the total of the contribution schedule lot entitlements for the lots for which votes are counted against the motion is not more than 25% of the total of the contribution schedule lot entitlements for all lots included in the scheme.

All clauses must be satisfied for the motion to pass. If one fails, the motion fails.

As such, I recommend you consider each clause individually rather than trying to work it out all at once. It takes a bit more time, but it’s a fiddly clause so it is worth spending the time to look at it closely and count the votes exactly. If you don’t know the entitlements, you should be able to find them on a copy of your CMS.

Regarding whether a clause requiring a motion for dissent would affect other motions, it might depend on the issue you are discussing. Still, it may make sense to have this section listed as a separate motion or to write the motion with caveats that don’t allow it to prevent the passing of other motions. You would have to look at the wording of the motions to consider how to do this. Your body corporate manager may be able to help with this, but if it is a complex matter, you may need the help of a strata solicitor.

This post appears in Strata News #695.

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