In this article we explain the different types of Owners Corporation resolutions and which type of resolution is required for common Owners Corporation decisions.
What is a resolution?
A resolution is a legally binding written and recorded decision made by an owners corporation either at a meeting or by ballot.
Ordinary resolutions
Most resolutions made in owners corporations are ordinary resolutions. They are passed by a majority of votes either at a meeting or via a ballot. The committee of management is delegated the power to make ordinary resolutions on behalf of the owners corporation.
For example, an ordinary resolution is used to confirm the accuracy of minutes, elect a committee, approving financials and more.
Unanimous resolutions
A unanimous resolution is passed by all lots voting in favour of a resolution. It is required for the following:
Changing the plan of subdivision (including changes to lot liability and/or entitlement).
Disposing of all or part of the common property.
If there is no common property, resolving for each lot owner to arrange their own insurance.
If there are multiple single dwellings with common property, resolving for each lot owner to arrange their own insurance.
Special Resolutions
A special resolution is passed as a final resolution by 75% of total lot entitlement voting in favour if a ballot or poll is taken. In any other case, it is passed by 75% of the total votes of all lots voting in favour.
A special resolution can also pass as an interim special resolution if at least 50% vote in favour and no more than 25% vote against a resolution. Read More…