Body Corporate Quorums
Published:
Modified:
Before any decisions can be made at a body corporate meeting, one fundamental requirement must be met: a quorum. Without it, the meeting cannot legally proceed, and any resolutions passed may be invalid.
In simple terms, a quorum is the minimum level of attendance needed to ensure that decisions are made with enough owner representation behind them. It exists to protect fairness, accountability, and the integrity of the decision-making process within a scheme.
What is a Quorum?
A quorum is the minimum number of eligible voters required to be present at a general meeting before business can proceed.
If a quorum is not achieved within the required timeframe, the meeting is not properly constituted and must either be adjourned or proceed under special rules (where applicable).
How a Quorum is Formed
For most body corporate schemes, a quorum is determined by two key requirements:
1. Minimum physical attendance
At least two voters must be physically present at the meeting. However, if the scheme has two or fewer total voters, then one attendee is sufficient.
This requirement ensures that decisions are not made in isolation or without meaningful participation.
2. Minimum voting participation (25% rule)
In addition to physical presence, there must also be votes representing at least 25% of all eligible voters in the scheme. Because you cannot have a fraction of a voter, the number is rounded up to the nearest whole number.
For example:
- 100 voters → 25 required
- 86 voters → 22 required (21.5 rounded up)
- 72 voters → 18 required
- 62 voters → 16 required (15.5 rounded up)
Both conditions must be satisfied for a quorum to exist.
Who Counts as a Voter?
Determining the number of voters is not always as straightforward as counting lots. A ‘voter’ is an entity entitled to vote at the meeting, and this can differ from the number of owners.
Here are the considerations:
- Unfinancial owners still count as voters when calculating the total number of voters, even though their voting rights may be restricted in some circumstances.
- A lot owned by a company only counts as a voter if a valid representative has been appointed such as a corporate nominee, proxy, or power of attorney. If no representative is appointed, that lot may not be counted for quorum calculation purposes.
- Multiple lots owned by one entity still generally count as a single voter.
To understand how this works in practice, consider a scheme with 100 lots:
- If each lot is owned by a different individual → 100 voters
- If one owner holds 15 lots → 86 voters
- If 15 owners appoint the same representative → 72 voters
- If 10 company-owned lots have no appointed representative → 62 voters
These changes directly affect how many people must be present and how many votes are required for a quorum.
What Happens If There is No Quorum?
If a quorum is not reached within 30 minutes of the scheduled start time, the meeting cannot proceed as normal.
The options are:
- The meeting is adjourned to the same place, time, and day in the following week, or
- In some circumstances, it may proceed under reduced quorum rules.
At the adjourned meeting, if a quorum is still not present after 30 minutes, the attendees present are deemed to form a quorum. This means even a very small number of attendees, or potentially a single attendee, could validly pass resolutions.
Why the 25% Rule Matters
The 25% threshold ensures that decisions are not made by an unrepresentative minority. It balances practicality – so meetings can proceed without full attendance, with fairness – so outcomes reflect a meaningful portion of the scheme.
However, it also highlights a common issue in strata schemes: low participation can lead to decisions being made by a very small group of owners, especially at adjourned meetings.
Voting Rights and Financial Status
Once a quorum is achieved:
- Eligible voters, including unfinancial owners in certain contexts, may participate in voting.
- However, restrictions may apply depending on the type of resolution. For example, motions requiring a resolution without dissent or committee elections may restrict voting to financial lot owners only.
In summary
Quorums are not just a procedural formality. they are the foundation of valid decision-making in body corporate meetings. They ensure that outcomes reflect genuine participation from the scheme and help maintain legal and operational integrity.
Without a quorum, there is no meeting. And without a meeting, there are no valid decisions.
Related content
Subscribe To Our Newsletter
More To Explore
Body Corporate Quorums
A quorum is the minimum level of attendance needed to ensure that decisions are made with enough owner representation behind them. It exists to protect fairness, accountability, and the integrity of the decision-making process within a scheme.
Body Corporate Sinking Funds Explained
A body corporate sinking fund is a long-term reserve fund used to pay for major capital works on common property in a strata scheme. It exists to ensure that large, infrequent expenses can be planned for and funded over time, rather than requiring sudden financial contributions from owners.