What are General and Special Resolutions in a Strata Scheme?
The structure of a strata scheme uses a number of collective and democratic methods for effective community living, and one of these is the all-important voting process at strata meetings. You may have heard that a general or special resolution is required to pass a specific motion, but what exactly does this mean? We look at resolutions and when each type may be required.
What is an ordinary or general resolution?
When your strata scheme needs to collectively make a decision, it will hold a vote between eligible owners and assigned proxy voters at a convened general meeting. For many decisions within a strata scheme including appointing a strata manager and to determine levies, a general resolution will be required in order to pass the motion. This means that more than 50% of the voters would have to be in favour of that motion for it to be successful.
What is a special resolution?
A special resolution is required for various decisions within a strata scheme, including adding or changing by-laws and amending rules about common property. This type of resolution simply means that 75% or more of the people present or by proxy and entitled to vote must be in favour of a motion in order for it to be passed.
What is a unanimous resolution?
In certain situations, including the decision of whether or not to distribute surplus funds, a unanimous resolution may be required. This means that all eligible votes must agree to the motion in order for it to be passed, with no single vote against the motion. An owner does not have to be financial (or up to date with their contributions) to vote regarding a motion that requires a unanimous resolution.
What are unit entitlements?
In many strata schemes the individual units will not be of equal size, value or other characteristics, which is why unit entitlements are calculated and used to assess the voting strength of an owner or proxy. If you hear a reference to ‘value of the vote’, this refers to an owner’s voting strength as per their unit entitlement.
What is a quorum?
You may have heard about a quorum being required in order for an owners corporation to vote on a matter. This means that in order for a general meeting to go ahead, at least one-quarter of the people entitled to vote (or holding at least one-quarter of the strata scheme’s unit entitlements) must be in attendance within 30 minutes of the meeting’s scheduled start time. If this does not occur, the meeting will need to be adjourned for at least 7 days, or, after thirty minutes, those people present can determine to commence the meeting with only those persons present.
Have further questions? Contact your local Jamesons Strata Management team on 02 8969 3300.