Types of Resolutions

How do you determine a special resolution?

A Special resolutions are difficult to determine whilst seeming simple at first reading of the requirements. Under the legislation a special resolution is where a motion is passed where not more than one-quarter of the value of votes cast are cast against the motion.

The value of a vote being determined on the unit entitlements apportioned to the lot.
An example:

Lot

Entitlement

1

10

2

20

3

10

4

10

5

20

6

10

7

20

 

 

 

 

 

In this situation the aggregate is 100 unit entitlements and ¼ would be 25 unit entitlements.
If all lots voted: If all lots voted on the motion then the votes cast against must not exceed 25 otherwise the motion is lost. So, if lots 1 and 2 voted against the motion it would be lost but if only lots 1 and 3 voted against the motion it would pass.

If all lots do not vote: In some instances all lots may not vote (they may not attend the meeting or may chose to abstain or not vote at all). In this case the aggregate “of the vote” is reduced and as a result the relative value of votes cast against changes.

If lots 1 and 3 either did not vote or did not attend the meeting they are not considered as taking part in the vote. The aggregate of votes would be 80 and the votes against must not exceed 20. So, if lots 2 and 4 vote against the motion it would fail but if lots 4 and 6 voted against the motion it would pass (if all others voted in favor).

Original owner issues: Where the original owner still holds lots in the scheme that total more than half of the total aggregate of unit entitlements then the votes are reduced accordingly. If the original owner owned lots 2, 5 and 7 then the vote would be reduced to a third (1/3 of 60 = 20). The total aggregate would then be 60 and the votes cast against must not exceed 15. So, if all lots voted and lots 3 and 4 voted against the motion would fail but if only lot 6 voted against the motion would pass.

In addition if the original owner voted against the motion (for the 3 lots = 20 unit entitlements) the motion would fail.


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