Question: A lot owner disagrees with online voting. We have proceeded down this path and he now wishes to halt the process and begin again with an in person meeting. Can we continue with the online discussion and voting process?
The majority of our council agreed to appoint new strata management via discussion in an online thread and then a vote. One of our members is very traditional, therefore, unhappy with the online voting process and has called a meeting. He believes we should stop the discussion and the voting already in progress.
We have to work within the strata regs but does this override an already agreed process? Can we continue with the online discussion and vote?
Answer: If an idea is proposed and approved by the majority, that is democracy. Move on and work with the majority.
In looking at the preliminary details and the situation described, I can respond with the following.
The Strata Titles Act 1985 (STA) changed on 1 May 2020.
Information on voting can be found in sections 120 to 134 of the STA.
From the details provided, a “majority” vote by the council of owners decided to have an online vote to resolve the issue of voting for a new strata manager.
Everyone is entitled to an opinion and, like noses, everyone has one.
If an idea is proposed and approved by the majority, that is democracy. Move on and work with the majority.
The new changes to the STA section 120 mean that “a proposed resolution can be put to the members of a strata company” either (3)(a) at a general meeting or 3(b) outside of a general meeting.
Majority votes at a general meeting can only be voted on by a person who is “entitled” to vote. The word “entitled” used in the STA could have been made simpler and stated as “financial”.
If you are “entitled”, this means you are “financial”. If you are unfinancial, you are not entitled to vote.
By looking at the other strata legislation Strata Titles General Regulations 2019 (STGR) to be read in conjunction with the STA we find the following:
Section 120(8)(b) STA: Voting
- The voting system, whether it is electronic or by other means, must —
- enable votes to be cast in a manner designed to protect the integrity of the voting system; and
- comply with any requirements specified in the regulations.
Regulation 89 STGR: Voting
For the purposes of section 120(8)(b), if a vote is to be taken outside of a general meeting, the notice of the proposed resolution must specify the following —
- how the vote will be conducted;
- how a vote may be submitted;
- the closing date for submitting a vote;
- how the owner of a lot will know their vote has been cast;
- how the results of the vote will be published.
One method of electronic voting that comes to mind is “Strata Vote” but there are many other applications that could be used.
It is important to ensure that you have provided proper notification of the electronic meeting and the agenda or resolution required to be voted on; when the voting is going to open and when it will close. See section 121 STA.
Also refer to section 123 Resolutions
For an Ordinary Resolution see section 121(7)(a) and (b):Voting period
- A resolution of a strata company is an ordinary resolution if —
- for a resolution passed other than at a general meeting, 14 days’ notice of the terms of the proposed resolution is given to each member of the strata company before voting on the resolution opens; and
- it is passed when counted as required under section 122 (1)(c) —
- by number — by more than 50% of the number of lots for which votes are cast; or
- by unit entitlements — by more than 50% of the sum of the unit entitlements of the lots in the scheme for which votes are cast.
Note for this subsection:
For an ordinary resolution, the question is determined against the resolution on an equal number of votes, whether counted by number or by unit entitlements.
This post appears in Strata News #646.
Shane White
Strata Title Consult
E: shane.white@stratatitleconsult.com.au
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