Australian Capital Territory Current Acts Australian Capital Territory Current Acts(see s 17)
Note The owners corporation of a units plan is responsible for managing the units plan. In managing the units plan the owners corporation is required to, or may, make various decisions under this Act. The members of the owners corporation make those decisions at general meetings. The following provisions set out how general meetings (including annual general meetings) must be conducted and how decisions are made at those meetings.
3.1 Conduct of general meetings
(1) An owners corporation for a units plan may hold, adjourn and otherwise regulate general meetings as it considers appropriate, subject to this schedule.
(2) The owners corporation may authorise a meeting to be held using a method of communication, or a combination of methods of communication, that allows a member taking part to hear or otherwise know what each other member taking part says without the members being in each other's presence.
Examples
a phone link, a satellite link, an internet or intranet link
(3) A person who takes part in a meeting conducted under subsection (2) is taken, for all purposes, to be present at the meeting.
(1) An owners corporation for a units plan must hold an annual general meeting each financial year.
(2) Except for the first annual general meeting, an annual general meeting must be held within 15 months after the last annual general meeting.
3.3 First annual general meeting
(1) The first annual general meeting of an owners corporation for a units plan must be held within 3 months after the registration of the units plan.
(2) The first annual general meeting of an owners corporation may be called by the executive committee of the corporation or by a member of the corporation.
3.4 First annual general meeting—developer to deliver records
At the first annual general meeting of an owners corporation for a units plan, the developer must give the following records to the corporation:
(a) the statutory books and records of the corporation, up to the date of the meeting;
(b) any insurance policy issued in the name of the corporation;
(c) any plans, specifications, diagrams or drawings that relate to the design or service of the units or common property of the units plan, including the development approval and any condition to which the approval is subject;
(d) the developer's maintenance schedule for the common property;
(e) a copy of any contract entered into by the corporation that relate to the common property of the units plan;
(f) any warranty that relates to the common property of the units plan;
(g) the corporation's seal (if any);
(h) any other document that relates to the units or common property of the units plan.
3.5 General meetings other than annual general meetings
(1) The executive committee of an owners corporation may call a general meeting, by notice under section 3.6, whenever it considers appropriate.
(2) Subsection (3) applies if the executive committee of an owners corporation receives a written request (a meeting request ), stating the matters to be considered at the meeting, from people who are entitled to vote on all motions for units whose combined unit entitlement is at least 1 / 4 of the total unit entitlement in the units plan.
(3) The executive committee must hold a general meeting, by notice under section 3.6, within 28 days after the day it receives the meeting request.
3.6 Notice of general meetings
(1) The executive committee of an owners corporation must give notice of a general meeting to—
(a) each member of the corporation; and
(b) each mortgagee's representative (if any).
(2) The executive committee must give notice of the general meeting—
(a) so that the notice would reasonably be expected to be received at least 14 days before the date fixed for the meeting; or
(b) if a motion is to be moved that requires an unopposed or unanimous resolution—so that the notice would reasonably be expected to be received at least 21 days before the date fixed for the meeting.
(3) However, if the notice of the annual general meeting is for a units plan that is a retirement village—
(a) subsection (2) does not apply; and
(b) the executive committee of the owners corporation must give the notice in the time mentioned in the Retirement Villages Act 2012
, section 159 (1) (Proposed annual budget).
3.7 Requirements for notice of general meetings
(1) A notice of a general meeting for an owners corporation must state—
(a) the time, date and place fixed for the meeting; and
(b) whether the person notified is entitled to vote on all (or any) motions at the meeting, and if not, why not; and
Note Section 3.20 explains who is entitled to vote on which kinds of motion. For example, if an amount is owing to the corporation in relation to a particular unit at the time of the general meeting, no vote may be cast by the unit owner (or anyone else) for that unit on any motion requiring an ordinary or special resolution.
(c) for a member who is not entitled to vote on any motion because a mortgagee voting notice has been given—details of the notice, including the full name and address for correspondence of the mortgagee's representative; and
(d) if a motion is to be moved that requires an unopposed or unanimous resolution—the text of the motion and the kind of resolution.
(2) For a notice of a general meeting given to a person entitled to vote on any motion, the notice must include—
(a) a proxy form; and
Note If a form is approved under s 146 for this provision, the form must be used.
(b) an absentee voting paper for the motion in a form approved by the executive committee.
(3) For a notice of an annual general meeting, the notice must include a copy of the following:
(a) the annual financial statements of the corporation to be presented at the meeting;
(b) the general fund budget;
(c) if the notice is for the annual general meeting of a units plan that is a retirement village—the proposed annual budget and the statements required under the Retirement Villages Act 2012
, section 159.
3.8 Defective notice of meetings
(1) The proceedings at a general meeting are not invalid only because a person did not receive proper notice of the meeting.
(2) However, if a person did not receive notice of the meeting in accordance with section 3.6 (2), the person may make a request for the adjournment of the meeting by written notice to the executive committee before the day or time fixed for the start of the meeting.
(3) A request by a person under subsection (2) may be made by someone else on the person's behalf.
(4) If the executive committee receives a request for adjournment under subsection (2), the committee must give the request to the chairperson of the meeting immediately after the chairperson is elected.
(5) The chairperson may adjourn the meeting to a time, date and place to be decided (by ordinary resolution) by the people present and entitled to vote on all motions at the meeting if the chairperson considers on reasonable grounds that—
(a) notice of the meeting in accordance with section 3.6 (2) was not given to the person by or for whom the request was made; and
(b) in the circumstances it would be unfair to allow the meeting to go ahead at present.
3.9 Quorum at a general meeting—owners corporation with 3 or more members
(1) A motion may be considered at a general meeting of an owners corporation with 3 or more members only if there is present—
(a) a quorum (a standard quorum ) made up by 1 of the following:
(i) for a units plan that is a retirement village—people entitled to vote (on the motion) in relation to not less than 1 / 3 the total number of units;
(ii) in any other case—people entitled to vote (on the motion) in relation to not less than 1 / 2 the total number of units; or
(b) a quorum (a reduced quorum ) made up under subsection (2).
(2) If a standard quorum is not present within ½ an hour after the motion arises for consideration, a reduced quorum for the motion and any subsequent motion considered at the meeting is made up by 2 or more people present at the meeting who are entitled to vote on the motion.
(3) If a reduced quorum is not present ½ an hour after the motion arises for consideration, the meeting is adjourned to the same day in the next week at the same place and time.
(4) If a reduced quorum is present for the consideration of any motion and the motion is voted on, section 3.10 (Notice of reduced quorum decisions and adjournments) applies to the decision on the motion.
(5) If a reduced quorum is present for the consideration of any motion and the motion is not voted on, the meeting may decide to adjourn to the same day in the next week at the same place and time to consider the motion (and any others remaining to be considered).
(6) If a general meeting is adjourned under this section (including paragraph (c)) and a standard quorum is not present within ½ an hour after a motion arises for consideration at the adjourned meeting—
(a) a reduced quorum is made up by the people who are then present and entitled to vote on the motion and any subsequent motion considered at the adjourned meeting; and
(b) if a reduced quorum is present for the consideration of any motion at the adjourned meeting, and the motion is voted on—the decision on the motion must be notified under section 3.10; and
(c) if the motion (or any other) is not voted on at the adjourned meeting—the adjourned meeting may resolve to adjourn again to the same day in the next week at the same place and time to consider the resolution (and any others remaining to be considered at the meeting).
3.10 Notice of reduced quorum decisions and adjournments
(1) If a decision (a reduced quorum decision ) is made on a motion while a reduced quorum was present for the consideration of the motion, within 14 days after the meeting the owners corporation must give each person mentioned in section 3.6 (1) (Notice of general meetings) written notice of the reduced quorum decision.
Note If a form is approved under s 146 for a notice, the form must be used.
(2) A reduced quorum decision notice is taken to be given—
(a) if sent by prepaid post or email—when it is sent; and
(b) if placed in the letterbox for mail for an occupier who is a member of the corporation—when it is placed in the letterbox.
(3) Within 4 days after a general meeting is adjourned under section 3.9, the owners corporation must give each person mentioned in section 3.6 (1) a written notice of the date, place and time to which the meeting is adjourned.
3.11 Reduced quorum decisions—effect
(1) A reduced quorum decision takes effect 28 days after the decision was made, subject to this section.
(2) Subsection (1) does not apply if the owners corporation fails to give notice of the reduced quorum decision under section 3.10 (1).
(3) A reduced quorum decision is disallowed if, within 28 days after the decision was made, the owners corporation is given a petition requiring that the decision be disallowed signed by a majority of people entitled to vote on the relevant motion at the time of signing (whether or not they were present or entitled to vote on the motion at the general meeting at which the decision was made).
(4) If, within 28 days after a reduced quorum decision is made, a motion is passed confirming the reduced quorum decision while a standard quorum is present at a general meeting for consideration of the confirmation motion, the reduced quorum decision takes effect on confirmation, whether or not a petition under subsection (3) is at any time given to the owners corporation.
(5) This section does not prevent a reduced quorum decision from being revoked at a general meeting, whether a standard quorum or reduced quorum is present while the revocation motion is being considered.
3.12 Quorum at a general meeting—owners corporation with 2 members
(1) A motion may only be considered at a general meeting of an owners corporation with 2 members if a quorum constituted by all people entitled to vote on the motion is present.
(2) If a quorum is not present within ½ an hour after the motion arises for consideration, the meeting is adjourned to the same day in the next week at the same place and time.
3.13 Chairperson at a general meeting
(1) The chairperson of a general meeting is the chairperson of the executive committee, unless that person—
(a) is not present at the meeting; or
(b) does not wish to be chairperson of the meeting.
(2) If the executive committee's chairperson is not present at the general meeting, at the beginning of the meeting, the people present and entitled to vote may elect someone else who is present and entitled to vote as chairperson for the meeting.
(3) The chairperson for the meeting may leave the chair during the meeting for any reason.
(4) If the
chairperson leaves the chair during the meeting, the people present and
entitled to vote must elect another person present and entitled to vote as
chairperson.
Part 3.2 Resolutions at general meetings
3.14 Decision-making at general meetings
(1) Decisions at general meetings must be made by ordinary resolution, unless this Act requires otherwise.
(2) If, at a general meeting, an owners corporation makes a resolution of a particular kind (that is, an ordinary, special, unopposed or unanimous resolution), a resolution of the same kind at a general meeting is required to amend or revoke the earlier resolution, unless this Act requires otherwise.
(1) For an owners corporation with more than 2 members, the requirement for passing an ordinary resolution at a general meeting is that—
(a) unless a poll is taken—the number of votes cast in favour of the resolution is greater than the number of votes cast against it; or
(b) on a poll—the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it.
(2) For an owners corporation with 1 or 2 members, the requirements for passing an ordinary resolution at a general meeting are that—
(a) no votes are cast against the resolution; and
(b) at least 1 vote is cast in favour of the resolution.
Notes for s (2)—owners corporations with 1 or 2 members
1 If the owners corporation has 2 members, both must be present to make up a quorum for consideration of the resolution (see s 3.12), unless either is not entitled to vote on the resolution (see s 3.20).
2 An abstention for any unit does not in itself prevent an ordinary resolution from being passed, if at least 1 vote is cast in favour of the resolution.
3 A vote may be cast for a unit on an ordinary resolution even if an amount owing to the owners corporation remains unpaid (see s 3.20 (3)).
(1) For an owners corporation with more than 3 members, the requirements for passing a special resolution at a general meeting are that—
(a) unless a poll is taken—
(i) the number of votes cast in favour of the resolution is greater than the number of votes cast against it; and
(ii) the votes cast against the resolution number not more than 1 / 4 of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes); or
(b) on a poll—
(i) the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it; and
(ii) the voting value of votes cast against the resolution is not more than 1 / 4 of the voting value of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes).
(2) For an owners corporation with 3 members, the requirements for passing a special resolution at a general meeting are that—
(a) unless a poll is taken—
(i) the number of votes cast in favour of the resolution is greater than the number of votes cast against it; and
(ii) the votes cast against the resolution number less than 1 / 3 of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes); or
(b) on a poll—
(i) the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it; and
(ii) the voting value of votes cast against the resolution is less than 1 / 3 of the voting value of the total number of votes that can be cast on the resolution by people present at the meeting (including proxy votes).
(3) For an owners corporation with 1 or 2 members, the requirements for passing a special resolution at a general meeting are that—
(a) no votes are cast against the resolution; and
(b) at least 1 vote is cast in favour of the resolution.
Notes for s (3)—owners corporations with 1 or 2 members
1 If the owners corporation has 2 members, both must be present to make up a quorum for consideration of the resolution (see s 3.12), unless either is not entitled to vote on the resolution (see s 3.20).
2 An abstention for any unit does not in itself prevent a special resolution from being passed, if at least 1 vote is cast in favour of the resolution.
3 A vote may be cast for a unit on a special resolution even if an amount owing to the owners corporation remains unpaid (see s 3.20 (3)).
The requirements for passing an unopposed resolution at a general meeting are that—
(a) no votes are cast against the resolution; and
(b) at least 1 vote is cast in favour of the resolution.
Note 1 An abstention for any unit does not in itself prevent an unopposed resolution from being passed, if at least 1 vote is cast in favour of the resolution.
Note 2 If the owners corporation has 2 members, both must be present to make up a quorum for consideration of the resolution (see s 3.12), unless either is not entitled to vote on the resolution (see s 3.20).
(1) For an owners corporation with more than 2 members, the requirements for passing a unanimous resolution at a general meeting are that—
(a) each person entitled to vote on the resolution—
(i) is present at the meeting; or
(ii) has given another person present at the meeting a proxy permitting the person to vote on the resolution; or
(iii) has cast an absentee vote on the resolution; and
(b) no votes are cast against the resolution; and
(c) at least 1 vote is cast in favour of the resolution.
(2) For an owners corporation with 1 or 2 members, the requirements for passing a unanimous resolution at a general meeting are that—
(a) no votes are cast against the resolution; and
(b) at least 1 vote is cast in favour of the resolution.
Note 1 An abstention for any unit does not in itself prevent a unanimous resolution from being passed, if at least 1 vote is cast in favour of the resolution.
Note 2 If the owners corporation has 2 members, both must be present to make up a quorum for consideration of the resolution (see s 3.12), unless either is not entitled to vote on the resolution (see s 3.20).
3.19 Evidence of resolutions of owners corporation
Evidence of the following facts about a resolution of an owners corporation may be given by a certificate issued by the executive committee:
(a) the fact that at a general meeting held on a stated date a resolution in the terms set out in the certificate was passed;
(b) the
fact that the resolution was an ordinary, special, unopposed or unanimous
resolution.
Part 3.3 Voting at general meetings
(1) The people entitled to vote on a motion at a general meeting of an owners corporation are as follows:
(a) for a unit owned by a single individual—the unit owner;
(b) for a unit owned by a single company—the company's representative;
(c) for a unit owned by 2 or more part-owners—the part-owners' representative.
(2) However, if a unit is subject to a mortgage and a mortgagee voting notice is in force for the unit, the person entitled to vote for the unit is the mortgagee's representative rather than the relevant person mentioned in subsection (1).
(3) If the owners corporation has 3 or more members, a person is only entitled to vote for a unit on a motion requiring an ordinary or special resolution if all amounts payable to the owners corporation for the unit have been paid.
(4) In addition, a person is not entitled to vote on a motion at a general meeting if an ACAT order requires the person to not vote on the motion or at the meeting.
3.21 General meeting—decisions about staged development
(1) This section applies to a motion at a general meeting of an owners corporation for a staged development if the development has not been completed.
(2) The people entitled to vote on the motion are as follows:
(a) if the motion is only about an uncompleted stage of the development—the people entitled to vote under section 3.20 in relation to units in the uncompleted stages of the development;
(b) if the motion is only about a completed stage of the development—the people entitled to vote under section 3.20 in relation to units in the completed stages of the development;
(c) in any other case—the people entitled to vote under section 3.20.
3.21A General meeting—decisions about defective building work
(1) This section applies to a motion at a general meeting of an owners corporation in relation to defective building work.
(2) The developer of the units plan is not entitled to vote, or exercise a proxy vote, in relation to the motion unless—
(a) the members of the owners corporation, other than the developer, pass a special resolution allowing the developer to vote; or
(b) the ACAT makes a declaration under subsection (3).
(3) On application, the ACAT may make a declaration that the developer may vote on a motion if—
(a) the ACAT is satisfied, to the extent practicable, that the developer is not likely to be responsible for the defective building work; or
(b) taking into account the interests of the owners corporation, the individual unit owners and the developer—barring the developer from voting would be unreasonable.
(4) This section does not apply if the developer owns all of the units in the units plan.
A single vote is exercisable for each unit at a general meeting.
(1) If the interest of a unit owner is subject to a mortgage, the mortgagee may give the owners corporation written notice (a mortgagee voting notice ) that—
(a) the unit is subject to the mortgage; and
(b) the mortgagee proposes to exercise the voting right given under section 3.20 (2); and
(c) an individual named in the notice (the mortgagee's representative ) is authorised to vote at general meetings for the unit on behalf of the mortgagee, instead of the person otherwise entitled to vote for the unit.
(2) The mortgagee voting notice must state the full name and address for correspondence of the mortgagee's representative.
(3) If a unit is owned by 2 or more part-owners, and the interest of 1 of the owners who has more than a ½ share in the unit is subject to a mortgage, the mortgagee may give a mortgagee voting notice under this section.
(4) If the interest of a unit owner is subject to 2 or more mortgages, this section applies only to the mortgagee whose mortgage has priority.
3.24 Mortgagee voting notice—amendment and revocation
(1) The mortgagee may change the mortgagee's representative by written notice to the owners corporation.
(2) The notice of change of representative must—
(a) include the full name and an address for correspondence of the new representative; and
(b) be signed by the mortgagee.
(3) The mortgagee's representative may change the address for correspondence by written notice to the owners corporation of the change.
(4) The notice of change of address must be signed by the representative.
(5) A mortgagee voting notice—
(a) is revoked when the mortgagee gives written notice of revocation to the owners corporation; or
(b) is taken to be revoked when the mortgage is discharged.
(6) A mortgagee who has given a mortgagee voting notice to an owners corporation commits an offence if, without reasonable excuse, the mortgagee fails to give written notice to the corporation of the discharge of the mortgage within 14 days after the discharge.
Maximum penalty: 5 penalty units.
3.25 Evidence of mortgagee's entitlement to vote
Evidence of any of the following facts may be given by a certificate issued by the executive committee:
(a) the fact that the authorisation of a named mortgagee's representative to vote for a stated unit was in force on a stated date;
(b) the fact that a stated address for correspondence for a mortgagee's representative was the latest address for correspondence for the representative notified to the corporation on a stated date;
(c) the fact that notice of the revocation of a mortgagee voting notice was given to the owners corporation by a named mortgagee on a stated date;
(d) the fact that notice of the discharge of a mortgage was given to the owners corporation on a stated date.
(1) Votes at a general meeting may be cast by proxy (whether or not a poll is demanded).
Note 1 If a form is approved under s 146 for this provision, the form must be used.
Note 2 Also, a proxy form must accompany the notice of general meeting (see s 3.7 (2) (a)).
(2) A person entitled to vote at a general meeting of an owners corporation must not—
(a) appoint a proxy for more than 1 year after the day the appointment is made; or
(b) appoint a person as a proxy if the person is—
(i) the manager; or
(ii) a service contractor.
(3) A person, other than the chairperson, must not exercise more than the following number of proxy votes in a vote on a matter at a general meeting:
(a) if there are more than 20 units in the units plan—a number that is not more than 5% of the total number of units;
(b) in any other case—1.
(4) If a person holds more proxy votes than they can exercise under subsection (3), the chairperson must exercise the excess proxy votes.
3.27 Proxy votes—limit on developer
(1) This section applies to a developer of a units plan who is appointed as the proxy under a contract for the sale of a unit in the units plan.
(2) The developer must not exercise 3 or more proxy votes in a vote on a matter at a general meeting of the owners corporation for the units plan unless—
(a) each contract for the sale of a unit in the units plan contains a proxy disclosure statement; and
(b) the use of each proxy vote is consistent with the statement; and
(c) the matter being voted on relates to development (the development matter ) rather than the ordinary operation of the owners corporation.
(3) If the developer exercises a proxy vote in contravention of this section, the proxy vote is void.
(4) For this section, a "proxy disclosure statement" is a statement that includes the following:
(a) if a person is appointed as a proxy—the name of the person;
(b) if the proxy is appointed by naming the occupant of a position—the name of the position;
(c) the length of time of the appointment;
(d) a sufficient description of the development matter for the buyer of a unit to easily identify the matter.
(1) Every vote at a general meeting is of equal value, unless a poll is taken.
(2) On a poll, the value of each vote (the voting value ) is the value that is proportional to the unit entitlement of the unit for which it is exercised.
(1) A poll may be demanded on an ordinary or special resolution at a general meeting by anyone present and entitled to vote at the meeting.
(2) A demand for a poll may be withdrawn.
(3) A poll may be taken in any way the chairperson considers appropriate.
(4) The result of a poll—
(a) must be declared at the meeting by the chairperson as soon as it is worked out; and
(b) decides whether or not the resolution for which the poll was demanded has been carried.
At a general meeting, the chairperson may (whether or not a poll is demanded)—
(a) exercise a deliberative vote as a member; and
(b) if there is an equality of votes—also exercise a casting vote, unless the owners corporation has only 2 members.
(1) A person entitled to vote on a motion may cast an absentee vote on the motion by recording the vote on an absentee voting paper and giving it to the owners corporation before the meeting begins.
Note An absentee voting form must accompany the notice of general meeting (see s 3.7 (2) (b)).
(2) The absentee voting paper must be in the form approved by the executive committee.
(3) An absentee vote under this section is a valid vote.
(4) A person who casts an absentee vote under this section is taken to be present at the general meeting at which the motion is moved (except for the purposes of making up a quorum) and to have voted on the resolution.
3.31A Alternative voting mechanism
(1) An owners corporation may, by resolution passed at a general meeting, agree to a way of voting on a matter, or a class of matters, to be decided by the owners corporation.
(2) A person is entitled to vote on a matter under subsection (1) only if the person would be entitled to vote on the matter if the matter was considered at a general meeting.
3.32 People under 18 or under other legal disabilities
(1) The right of a person to vote at a general meeting must not be exercised by the person if—
(a) the person is under 18 years old; or
(b) the person is under any other legal disability preventing the person from dealing with the person's property.
(2) The right to vote of an incapacitated person (under subsection (1)) may be exercised—
(a) if the person is under 18 years old—by the person's parent or guardian; or
(b) if the person is under any other legal disability—by a person for the time being authorised by law to control the person's property.
3.33 Declaration by chairperson of result of voting
(1) A declaration by the chairperson of the meeting that a motion has been passed is conclusive evidence of the fact without proof of the number or proportion of votes recorded against or in favour of the motion.
(2) Subsection (1) does not apply if—
(a) a poll is demanded; or
(b) a unanimous resolution is required.