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Ordinary resolutions are the most common type of resolution used at a general meeting. They provide the backbone for day-to-day decision making in a body corporate and allow owners to guide how their scheme is run.
How an ordinary resolution is decided
A motion is passed by ordinary resolution if the majority of votes are in favour – meaning there are more yes votes than no votes.
- If there are more no votes, the motion is defeated
- If the number of yes and no votes are equal, the motion is defeated
- If an owner abstains, their vote is not counted either for or against the motion
Only financial lot owners can vote, which means they must not have outstanding body corporate debts at the time of voting.
Voting methods
Each lot in the scheme normally has one vote on a motion. However, an owner can request that the motion be decided by poll vote.
In a poll vote, the voting power is based on each lot’s entitlements rather than simply ‘one lot, one vote.
For example:
- Lots 1–5 each have 1 entitlement
- Lot 6 has 3 entitlements
- Lot 7 has 4 entitlements
If lots 6 and 7 vote yes and lots 1–5 vote no, the motion would pass under a poll vote because the combined entitlements (7) outweigh those against (5).
Poll votes are not automatic. They must be specifically requested by a lot owner.
What can be decided by ordinary resolution?
Ordinary resolutions are generally used for routine or financial matters including:
- Adopting the administrative and sinking fund budgets
- Setting the annual contributions (levies) payable by owners
- Approving maintenance or repairs that exceed the committee’s spending limit
- Confirming or renewing the scheme’s insurance
- Electing the body corporate committee
Why ordinary resolutions matter
Because ordinary resolutions require only a simple majority, they ensure the body corporate can make important decisions efficiently while still reflecting the will of most owners. They strike a balance between fairness and practicality, allowing schemes to keep moving without unnecessary delays.
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Valid voting is essential to ensure that decisions made in a body corporate are legally sound, fair, and enforceable. Whether it’s approving a budget, electing a committee, or passing a by-law, the integrity of the voting process determines the validity of the outcome.