Procedures of community corporations
A proposed resolution can be put to the members of a community corporation either at a general meeting or outside of a general meeting.
There are two main types of resolutions in community schemes - an ordinary resolution and a special resolution. A resolution can only be proposed by a member of a community corporation who is entitled to vote on the resolution.
One vote on a proposed resolution may be cast for each lot and tier parcel in the scheme, and the value of the vote is based on the unit entitlement of the lot or the tier parcel.
This voting model only applies to ordinary and special resolutions and a different voting model applies for the termination of a community titles scheme.
Two types of resolutions
An ordinary resolution is:
- Passed if the value of the votes cast in favour of a proposed resolution is more than the value of the votes against.
- A simple majority based on unit entitlement.
A special resolution is either:
- Passed by a community corporation if the value of the votes cast in favour of a proposed resolution total more than three quarters of the sum of the unit entitlements of all the lots and tier parcels in the community titles scheme.
- Passed by a community corporation with only two or three members, if the value of the votes cast in favour of a proposed resolution total more than two thirds of the sum of the unit entitlements of all the lots and tier parcels in the community titles scheme.
Who cannot vote?
The owners of lots in the community titles scheme, and a representative from any member community corporation, are entitled to vote at a meeting of the community corporation.
The vote attached to a lot:
- Is exercisable by the owner of the lot.
- Is exercisable only through the owners jointly appointing a proxy, if two or more persons own the lot.
The vote attached to a tier parcel*:
- Is exercisable by the community corporation for the community titles scheme that subdivides the tier parcel.
- Is exercisable only if the vote of the community corporation is cast according to an ordinary resolution of the members of the community corporation.
* An example of a tier parcel could be a lot in a tier 1 scheme subdivided to create a tier 2 scheme, or a tier 2 lot in a tier 2 scheme subdivided to create a tier 3 scheme.
A decision about how a community corporation is to vote on a proposed resolution of a community corporation, of which it is a member, can be made by ordinary resolution regardless of whether the proposed resolution is required to be a special resolution.
Owners and members of community corporations that owe contributions (or other amounts owing to the community corporation) are called “unfinancial” members. Such members may be prohibited by scheme by-laws from casting a vote on an ordinary resolution. However, scheme by-laws cannot exclude a member of a community corporation from voting on a matter that requires a special resolution to be passed.
Original subdivision owners on a motion relating to building defects
Where a resolution is put to the community corporation for a community titles (building) scheme regarding a defect in a scheme building or in infrastructure that comprises of common property, an original subdivision owner (usually the developer) and people who are associates of an original subdivision owner are excluded from voting on this resolution. This restriction remains in place for a period of 10 years after completion of the infrastructure or a scheme building.
Annual General Meeting
A community corporation must hold an annual general meeting (AGM) of the corporation once in each 12 months and not later than 15 months after its previous AGM.
A general meeting of the members of a community corporation may be convened by the council of the community corporation. The council must convene a general meeting on the written request of a member(s) of the community corporation with lots or tier parcels with an aggregate relative unit entitlement of 25% or more.
Meetings of member community corporations
The community corporations in a community scheme have a duty to organise their meetings to enable decisions and resolutions to be made by the tiers. Community corporations can be considering and voting on the same resolution during the same period.
The voting system, whether it is electronic or otherwise must enable votes to be cast in a manner designed to protect the integrity of the voting system and comply with any requirements in the regulations made under the Act.
Meetings can be held using modern technology and the use of this technology to hold and vote in meetings can be specified in scheme by-laws. Voting may be conducted via electronic means, including email, skype and other forms of teleconferencing. Minutes and notices can also be distributed electronically. When using modern technology, the community corporation needs to consider record keeping methods to ensure the record keeping requirements of the Act are met.