In New South Wales (NSW), owners corporations play a pivotal role in managing strata properties. One of the essential aspects of their functioning is passing resolutions during meetings. These resolutions determine the course of action for various decisions and initiatives within the strata community. Let's delve into the different types of resolutions commonly encountered in owners corporation meetings in NSW.
Ordinary Resolutions: Ordinary resolutions are the most common type of resolution passed during owners corporation meetings. They require a simple majority vote, meaning more than 50% of the votes cast must be in favor for the resolution to pass. These resolutions cover a wide range of routine matters such as approving minutes, adopting financial statements, or appointing a managing agent.
Special Resolutions: Special resolutions are reserved for decisions of significant importance or those that have a lasting impact on the strata community. These resolutions require a higher threshold for approval, with at least 75% of the votes cast in favor, meaning no more than one-quarter of the people present (based on unit entitlement), either in person or by proxy, who are entitled to vote can vote against the motion. Matters such as adding/amending/repealing by-laws, altering common property, or authorising major expenditures typically require special resolutions.
Unanimous Resolutions: Unanimous resolutions are the most stringent type of resolution, meaning that there are no votes cast against the motion. Owners do not need to be financial to vote on unanimous resolutions. These resolutions are rare and typically pertain to fundamental changes that affect all owners equally. Examples include changing the scheme's name, creating or amending common property rights, distribution of surplus funds or winding up the owners corporation.
Strata Committee Resolutions: In addition to resolutions passed during general meetings, owners corporations may delegate certain decision-making powers to the strata committee. These ordinary resolutions are made by the committee members, however, they must be consistent with the powers granted to the committee by the owners corporation and they do not have authority to decide on matters that require a special or unanimous resolution.
In the intricate realm of strata management in New South Wales, comprehending the various resolution types is paramount for effective decision-making within owners corporations. From routine matters to significant changes, each resolution type carries its own weight and impact on the strata community. And if it still sounds a bit confusing, don't worry, the expert team at Compass Strata is ready to assist, ensuring you navigate meetings with confidence and achieve the best outcomes for your strata properties.
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