What is a Unanimous Resolution?

August 19, 2018

It was recently posed to me that a motion passed unanimously made it a unanimous resolution which left me perplexed as to the logic but I thought it prudent to run through the legislation to help explain.

 

There are three types of resolutions for Strata and Community titled properties, being ordinary, special and unanimous.

 

Section 3 of the Community Titles Act advises as follows:

 

ordinary resolution of a community corporation means a resolution passed at a properly convened meeting of the corporation by a simple majority of the votes of members present and voting on the resolution

 

special resolution of a community corporation means—

(a) where the number of community lots is three—see section 88;

(b) in all other cases—a resolution—

(i) of which at least 14 days notice setting out the text of the proposed resolution and any other information of a kind prescribed by regulation has been served on all the owners of the community lots; and

(ii) that is passed at a properly convened meeting of the corporation at which the number of votes (if any) cast against the resolution is 25 per cent or less of the total number of votes that could be cast at a meeting at which all members are present and entitled to vote

 

unanimous resolution of a community corporation means a resolution—

(a) of which at least 14 days notice setting out the text of the proposed resolution and any other information of a kind prescribed by regulation has been served on all the owners of the community lots; and

(b) that is passed at a properly convened meeting of the corporation without any vote being cast against it

An ordinary resolution can be passed unanimously; that is, all members present and voting on behalf of the resolution vote for the resolution but this holds no more weight than if the vote had been passed by simple majority of one more vote in favour than those against (ie, a 7-0 vote in favour means the same thing as a 4-3 vote for an ordinary resolution) unless the additional criteria are met it is not a unanimous resolution.

 

Most resolutions passed by a corporation at a meeting are ordinary, such as appointing a body corporate manager, arranging maintenance, accepting minutes, financials and setting levy contributions etc.  

 

The Community Titles Act does however impose limitations on how much money can be raised without it being either a special or unanimous resolution (depending on the amount) and the criteria for both the special and unanimous resolutions in the regulations attached to the Act require that the corporation advise in the text of the proposed motion the reasons behind the motion.

 

What are Unanimous Resolutions used for?

  • Change of registered plan

  • Change of Lot entitlement values

  • Amendment of the Scheme Description

  • Acquisition of property by freehold, leasehold, licence or concession

  • Sale of common property

  • Authorising expenditure of greater than $5000 per lot

 

What about Special Resolutions, what are these for?

  • Alterations and additions in Strata Schemes

  • Variation of By-laws

  • Variation/termination of the Development Contract

  • Distribute or transfer to another fund excess monies held in the administrative or sinking fund

  • Authorising expenditure between $2001 and $5000 per lot

I hope that this helps provide some clarity on the types of resolution in a property governed by the Community Titles Act 1996.  If you have any questions concerning this please contact the writer on 8350 5699.

 

 

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