Voting Mistakes Can Invalidate a Decision
Running a strata scheme involves many decisions from approving budgets to authorising repairs or updating by-laws. These decisions are usually made through voting at general meetings or by written/electronic ballot. But here’s the catch: if the voting process isn’t handled properly, the decision can be challenged and overturned.
Below, we unpack the most common voting mistakes that can invalidate a strata decision, and what owners and committees can do to avoid them.
Why Voting Rules Matter
Strata schemes operate under legislation such as the Strata Schemes Management Act 2015 (NSW) (and similar Acts in other states). These laws set out exactly how meetings and voting must occur. They cover things like notice periods, who can vote, how proxies work, and how many people need to be present (the quorum).
If these requirements aren’t followed, a decision may be ruled invalid by a tribunal (for example, NCAT in NSW) or a court. This not only wastes time and money but can also create conflict among owners.
Common Voting Mistakes
1. Not Giving Proper Notice of the Meeting
Before a meeting, owners must receive a formal notice with enough lead time (in NSW, at least 7 clear days for a general meeting). If the notice is late, or if key agenda items are missing, owners can argue they weren’t given a fair chance to participate.
2. Wording Motions Incorrectly
Each motion must be clear, specific, and classified correctly:
Ordinary resolution: a simple majority vote.
Special resolution: at least 75% in favour (by Unit Entitlement).
Unanimous resolution: all votes in favour.
3. No Quorum at the Meeting
A quorum is the minimum number of eligible voters who must be present (in person, by proxy, or by electronic means) before a meeting can start. If quorum isn’t met and the meeting goes ahead anyway without the correct procedure or declarations then any resolutions passed can be challenged.
4. Invalid Proxies
Proxy votes are common in strata, but there are strict rules:
The proxy form must be in writing and signed (all must sign if there are multiple owners of a Lot).
The proxy is not assigned to a natural person (e.g not ‘the chairperson’).
The person must not hold more than the legal limit (e.g. in NSW, 1 proxy in schemes of up to 20 lots, or 5% of the total lots in larger schemes).
Expired or incorrectly completed proxies are invalid.
Overstepping these rules can invalidate decisions.
5. Allowing Unfinancial Owners to Vote
If an owner has unpaid strata levies they generally lose their right to vote on most motions. Allowing them to vote could give the appearance of legitimacy to a decision that should never have passed.
6. Outdated or Incorrect Strata Roll
The strata roll (the register of lot owners and details) must be kept up to date. If ownership details aren’t correct and notices go to the wrong person, that owner may not get the chance to vote. This can be grounds for challenging a resolution. This includes improperly recorded company nominees.
7. Mishandling Electronic or Pre-Meeting Voting
Many schemes now allow voting by email, post, or electronic platforms. However, the procedures must comply with legislation and the scheme’s own by-laws.
For example:
The system used must record votes properly.
Voting must close at the correct time.
Owners must have equal access to the process.
If these safeguards aren’t in place, decisions may be open to dispute.
8. Miscalculating Unit Entitlements
Some votes are counted by number of lots, others by unit entitlement (a value assigned to each lot in the strata plan). If the wrong method is used, the result can be invalid. For example, a special resolution must be calculated by unit entitlement, not by simple headcount.
What Happens if a Decision Is Invalid?
If an owner believes a resolution was passed incorrectly, they can apply to the Tribunal or court to have it overturned.
This can result in:
The decision being struck out.
Additional costs for re-holding meetings.
Delays in repairs, projects, or legal compliance.
Increased tension among owners.
How to Avoid Mistakes
Here are some practical steps to keep your strata decisions valid:
Use a meeting checklist: double-check notice periods, agenda items, and quorum requirements.
Be precise with motions: make sure the wording matches the type of resolution required.
Keep the strata roll current: update ownership details as soon as sales are settled.
Verify financial status: check that only financial owners are voting.
Audit proxy forms: confirm they are valid and within the limits.
Follow electronic voting rules: use approved systems and processes.
Rely on professionals: strata managers can guide committees through the legal requirements.
Final Thoughts
Decisions affect everyone in the building and getting them wrong can be costly. Most mistakes happen not out of bad intent, but because of misunderstandings about the technical rules. By being careful with notice periods, voting entitlements, proxies, and procedures, owners can make sure their decisions are enforceable and stand the test of time.
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