The 3 types of resolutions in Community Schemes are Ordinary Resolutions, Special Resolutions and Unanimous Resolutions. In this article, we will explain the purpose for each of these resolutions.
1. Ordinary Resolutions
Resolution passed by at least 50% of the votes plus one of the members present or represented by proxy at a general meeting, or resolution taken by at least 50% of the votes plus one of the members of the scheme.
Ordinary resolutions are required to:
- Install separate meters – PMR 29(3).
- Remunerate Trustee who is not a member – PMR 8(3).
- Appoint a Managing Agent – PMR 28(5)(b).
- Remove a Trustee from office – PMR 6(4)(g).
- Cancel management agreement in accordance with its terms or refuse to renew management agreement when expires – PMR 28(8).
- Give consent for a structure/building improvement on an EUA which in practice constitutes a section or an extension of the boundaries/floor area of a section without complying with the requirements of the STA or STSMA; provided the Body Corporate may by ordinary resolution give consent of such structure/building improvement if they are satisfied that it does not require compliance with such requirements – PMR 30(g)(i).
- Prescribe any reasonable condition regarding the use/appearance of the structure/building improvement – PMR 30(g)(ii).
- Withdraw any consent if the member/other occupier of a section breach any condition in respect of any structure/building improvement – PMR 30(g)(iii)
2. Special Resolutions
Resolution passed by at least 75% of the votes (both in number and value) of members who are present at a meeting or by proxy, or resolution agreed to in writing by at least 75% of all such members of the scheme personally or by proxy (both in value and number).
Special Resolutions are required to:
- Lease common property for less than 10 years – STSMA 4(h).
- Install pre-paid water and electricity metres – PMR 29(4).
- Borrow money – STSMA 4(e).
- Create servitudes – STSMA 5(1)(g).
- Cancel the management agreement on two months’ notice prior to expiry – PMR 28(7).
- Grant Trustees who are members, the right to any reward, whether monetary or otherwise, for their services – PMR 8(2).
- Change the location of a general meeting to a place other than one in the local municipal area where the scheme is situated – PMR 15(4).
3. Unanimous Resolutions
Resolution passed by all members of the Body Corporate at a meeting at which at least 80% calculated in both value and number of the votes of all members are present or represented and all members who cast their votes do so in favour of the resolution, or resolution agreed to in writing by all members of the Body Corporate.
Unanimous Resolutions are required to:
- Sell any part of the common property – STSMA 5(1)(a).
- Effect improvements not reasonably necessary – PMR 29(1).
- Rent land outside of the scheme.
- Create a registered exclusive use right – STSMA 5(1)(e).
- Extend the time within which the developer may erect, or complete a building, or an extension of an existing building – STSMA 5(1)(c).
- Add to, amend or repeal management rules – STSMA 10(2)(a).
- Deem destroy the scheme – STSMA 17(1)(b).
- Rebuild/reinstate any building, or not to rebuild/reinstate any building that was damaged or destroyed – STSMA 17(3)(a).
- Make loans from Body Corporate funds – PMR 21(2)(a).