VIC: Owners Corporations Blog- Voting at Meetings- Ordinary Resolutions

This article is about the procedures and requirements for voting on ordinary resolutions at owners corporation meetings.

Owners Corporations Blog – Voting at Meetings – Ordinary Resolutions

So a lot owner turns up to an AGM or SGM. How does voting work?

The legislation is confusing. There are different rules and requirements for ordinary resolutions as opposed to special or unanimous resolutions. In this blog, we will deal with ordinary resolutions, voting by polls and written votes.

For ordinary resolutions

Section 87 of the Owners Corporations Act 2006 provides that for any resolution of an owners corporation there is to be one vote for each lot, whether the resolution is voted on at a meeting or by ballot.

Section 89(1) of the Act provides that a person may vote on a resolution at a meeting by a show of hands or in another prescribed manner unless the meeting resolves otherwise.

The prescribed manner is set out in Regulation 7B of the Owners Corporations Regulations 2018. The prescribed manner, whether hard copy or electronic, includes the following:

1. The owners corporation plan number;
2. The lot owner’s name and address;
3. The lot number;
4. If the vote is being cast by proxy, the name of the proxy;
5. The closing date for the vote;
6. Whether the motion requires an ordinary resolution, a special resolution or a unanimous resolution;
7. The text of the motion;
8. Any voting instructions;
9. A statement that explains the implications of abstaining from a motion;
10. A statement that the lot owner has the right to appoint a proxy;
11. The signature of the lot owner or the proxy and the date of the signature.

I would be surprised if anyone uses the prescribed manner with the amount of detail set out above given the level of detail and information that a voting form would be required to have.

Section 89(3) provides that a lot owner may (either in person or by proxy) before or after the vote is taken for an ordinary resolution require that a poll be taken based on one vote for each unit of lot entitlement. This effectively cancels out Section 87.

Voting in a poll must be by written vote.

Section 89A provides that chairpersons also have a second or casting vote if there is a voting deadlock.

An ordinary resolution shall be passed if a simple majority of votes cast at the meeting vote in favour of the resolution.

So what does the above mean?

For ordinary resolutions, if a poll is called, voting is based on lot entitlement. So if each lot has an unequal distribution of lot entitlement, voting results can be different if someone asks for a poll (as opposed to a show of hands where everyone gets one vote per lot).

What is also important is the fact that the vote passes if a simple majority of votes vote in favour of the resolution. This is important because an abstain is not a vote. A vote is either in favour or against a motion. A lot owner abstaining is not actually casting a vote and should not be counted for the purpose of whether the vote passes.

This can be relevant in circumstances such as the following example:

Where there are 10 lot owners in attendance and there is a show of hands.

4 people vote in favour of the resolution, 3 people vote against the resolution and 3 people abstain because they want to pick a side. In this circumstance, the vote passes because 4 is greater than 3 and the abstains are not counted.

However, if someone calls for a poll, then the vote is based on lot entitlement and the outcome may be different.

It is important to understand the voting rules and procedures to ensure that decisions made at owners corporation meetings are valid and reflect the will of the majority.

Phillip Leaman
Tisher Liner FC Law
E: [email protected]
P: 03 8600 9370

This post appears in Strata News #751.

This article has been republished with permission from the author and first appeared on the Tisher Liner FC Law website.

Have a question or something to add to the article? Leave a comment below.

Read next:

• VIC: Q&A Can an owners corporation revoke a resolution?
• VIC: Q&A Voting on Motions at the Owners Corporation Meeting
• VIC: Q&A Dealing with Problem Committee Members

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