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SA: What Happens When a Strata Resolution Is Tied in a Small Scheme?

SA@2x

This article discusses tied strata resolution vote, explaining what happens in a small strata scheme when a resolution is split evenly and no majority is reached.

Question: Who wins in a small scheme where there are 2 votes for and 2 votes against a resolution?

At our Body Corporate, a vote has been cast for work to be done on the common property building. There are four (4) units and the votes came in at 2 for and 2 against the resolution. What does this mean in relation to the carrying out of the proposed work?

Answer: You require a majority decision.

Under the Strata Titles Act, an ordinary resolution is defined as a resolution passed at a properly convened meeting of the corporation by a simple majority of the votes of unit holders present and voting on the resolution;

Our interpretation of this is that you require a majority decision, as there were two votes in favour and two against, there is no clear majority and therefore the motion has failed.

This post appears in Strata News #606.

Carrie McInerney Horner Management E: carrie@hornermanagement.com.au P: 08 8234 5777

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