We recently convened an AGM that highlighted the skill and knowledge needed to ensure the votes in a special resolution were correctly considered. Some decorative lights at the entrance to the property had failed. The repair cost was outrageous and the committee decided to disconnect and not reconnect them. Approval was sought and given by the electrical designers of the building that this action would not impact the original lighting design that was needed to meet council development conditions.
The committee included a special motion in the AGM notice of meeting since the proposed course of action was an improvement to the common property by the body corporate. At the AGM, the votes were – three in favour, one against and one abstain.
According to the BCCM Act, in a special resolution, at least two-thirds of the votes cast have to be in favour of the motion and the number of NO votes must not exceed 25% of the number of lots or 25% of the total contribution lot entitlements. At first glance, it might appear that the motion had not been lost – since 3 out of 5 does not make the threshold of two-thirds. However, a careful reading of the Act with help from an adjudication –
http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/qld/QBCCMCmr/2007/451.html
– identifies that abstentions do not count towards the number of votes cast. Therefore, the special resolution passed with three-quarters of votes cast in favour. The lights were not replaced.