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The contribution schedule of lot entitlements are the value of a lot owners’ votes where a poll is called to determine a matter by way of an ordinary resolution (see Section 110 of the Body Corporate and Community Management Act).  These motions that require an ordinary resolution form the day to day business of the body corporate.

Where a minority of lot owners or even a single lot owner may require special consideration or protection in relation to a proposed motion, the Body Corporate and Community Management Act provides for either a special resolution, majority resolution or resolution without dissent to determine the outcome of the motion.

The power of a lot owner’s vote, other than on matters requiring an ordinary resolution does not turn on the lot owner’s entitlement in the contribution schedule but on the style of resolution required for that particular motion. It must be noted that a lot owner is usually capable with a single vote, of defeating a motion, the effect of which would be to significantly alter or interfere with the lot owner’s rights of enjoyment of his lot.

For example, a motion which amends the by-laws by granting or withdrawing exclusive use of common property requires a resolution without dissent. Similarly a motion amending the community management statement for a scheme to include new lot entitlements, a motion to approve the sale of common property, or a motion to terminate the scheme will require a resolution without dissent. A motion for amendment of a by-law, other than an exclusive use by-law, requires a special resolution.

If a poll vote is called to determine a motion requiring an ordinary resolution, which motions generally relate to body corporate expenditure, it is entirely appropriate that the motion is determined with reference to the contribution in financial terms that each lot owner will in fact be required to make to the body corporate’s expenditure. It is therefore logical that the value of each lot owner’s vote on an ordinary resolution reflects the burden which that owner’s lot places on the body corporate’s funds.

 

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