First National

First National

Friday, July 19, 2013

Out-of-date by-laws mean pet bans will stay

VICTORIA

  1. The default rule (by-law) on pets basically says if you have a pet and it’s a nuisance and you’re told to get rid of it then you have to do so. 
  2. Changes require a special resolution vote --> 75 percent of votes at a general meeting have to be in favour.  (However, if more than 50 percent of votes but less that 75 percent are in favour and not more than 25 percent are against, the motion is passed as an Interim Special Resolution.)
  3. Postal ballot system in strata which can pass Special Resolutions and change rules on the same basis but without having to hold a physical meeting.  

NEW SOUTH WALES 

  1. By-law (or ‘rule’) changes require a special resolution vote which means 75 percent of votes at a general meeting have to be in favour.  However, if more than 50 percent of votes but less that 75 percent are in favour and not more than 25 percent are against, the motion is passed as an Interim Special Resolution.

ACT

  1. By-laws can be changed by a special resolution --> less than one-third of people present (including proxy votes and absentee votes) have voted against the resolution, and more votes have been cast in favour of the motion than against it.
Note that subtle difference – it’s not fewer than one third of people actually voting, it’s one third of people at the meeting either in person or represented by proxy or by postal vote.

SOUTH AUSTRALIA

Finally we can take a deeeeeep breath and relax. It's a lot simpler in South Australia..  

  1. Here, you require a special resolution to change a by-law but it has to be supported by two-thirds of all owners, not just those voting at a general meeting.

QUEENSLAND 

  1. You need two-thirds of votes cast at a general meeting to be in favour of the change, provided those who vote against represent no more than 25 percent of the lots.

This is how it might work – you have a block of, say, 100 units and they all turn up or send votes to a general meeting (yes, this IS hugely hypothetical).  A by-law change is proposed and 67 owners are in favour.  So far, so good.  But the other 33 percent all vote against, representing more than 25 percent of owners so the motion fails.
If, however, only half the owners turned up or sent votes to the meeting (a much more likely scenario) and 34 of them voted for the change (68 percent) and the other 16 voted against, the motion would pass because only 16 percent of the total owners (rather than voters) had said no.
Add in complications like limits on proxy votes, lot entitlements and voting by email and you have a system that, like NSW’s can be easily manipulated by an active and organized minority, especially one resistant to change

WESTERN AUSTRALIA

  1. By-laws are divided into Schedule 1 and Schedule 2. 
  2. Schedule 1 appear to be about basic rights and responsibilities – everything from how to elect your committee to being allowed to decorate your own home – and they require a vote “without dissent” to pass them. A vote without dissent in WA means that nobody who turns up at the meeting or sends a proxy vote, has voted against the motion.
  3. Schedule 2 By-laws in WA cover things like parking, children playing on common property and drying laundry and can be changed by special resolution. A special resolution in WA is passed when votes in favour represent ownership of  no less than 50 percent of the lots or unit entitlements AND the votes against represent no more than 25 percent of ownership.
  4. In WA the Schedule 1 and 2 by-laws apply to all strata schemes but with exisiting by-laws that are additions to or changes of these by-laws also being accepted.
To take that fictional 100-lot block again if only half the owners vote and even one says “nay” then the motion fails because it didn’t reach the 50 percent threshold. But if 75 owners vote and 24 say no and the other 51 say yes, then it’s passed (but only just). Best of luck to our WA readers when you get a couple of massive blocks mostly owned by overseas investors – try getting your required 50 percent of informed and engaged owners then.

NORTHERN TERRITORY

  1. You can change ‘articles’ by special resolution, which requires that two-thirds of owners voting are in favour but no more than 25 percent of unit entitlements are held by those voting against.

TASMANIA

  1. By-laws can be created or changed by a simple majority at a general meeting.  Tassie is also one of those states where, if a by-law (or ‘article”) doesn’t exist in a specific strata scheme, then the one in the standard scheduled by-laws applies

Hope I've broken it down enough for you peeps! But here's the full article and more links!! 

Have a great weekend everyone!!

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