The legislation makes provisions for Owners Corporations to be able to delegate authority to allow it to operate and make decisions as it sees fit (but within the boundaries of the legislation).

The legislation makes provisions for three types of resolutions (decisions) that an Owners Corporation can make and each of the resolutions has a criteria that needs to be met for the resolution to be passed.

  • Ordinary Resolution.

Most decisions made at general meetings are done so via an ordinary, or general, resolution.  For an Owners Corporation to make an ordinary resolution, at least 50% of people in attendance at the meeting, or voting by proxy, must vote in favour.  Decisions such as approving the Owners Corporation budget, changing the caretaker, or decisions around the properties insurance needs are made in this way.

  • Special Resolution (75% of votes in favour)

Some decisions, such as making changes to the Owners Corporations rules or granting a lease for exclusive use of Owners Corporation property, require a special resolution to be passed.  For a special resolution to be passed a properly convened meeting must be held and 75% of people attending, in person or by proxy, who are eligible to vote, must vote in favour of the motion.  In this case, the value of each vote is determined by the unit entitlement of each lot.

  • Unanimous Resolution (100% of votes in favour).

For some decisions, such as the alteration to a plan of subdivision, the vote in favour needs to be unanimous for a motion to be passed, and members do not need to be financial to be eligible to vote.

The legislation prohibits the Owners Corporation from delegating the powers of a Special Resolution and / or Unanimous Resolution.

An Owners Corporation committee must elect a chairperson. This person also becomes the Owners Corporation chairperson.

All Owners Corporations, committees and delegates are required to:

  • act honestly and in good faith
  • exercise due care and diligence in carrying out their functions, powers and activities
  • not make improper use of their position to gain, directly or indirectly, an advantage for themselves or for any other person (Consumer Affairs Victoria).

Each of these types of resolutions can be considered at an Annual General Meeting. In between such meetings Owners Corporations will still need to make decisions and as such must elect a Chairperson and Secretary and Owners Corporations with greater than 13 lots must elect a committee of lot owners (or their proxies) to facilitate such decision making.

The legislation delegates all powers to committee members that can be delegated (Ordinary Resolutions). An Owners Corporation can quarantine certain Ordinary Resolutions to be only be considered at an Annual General Meeting or Special General Meeting.

The legislation prohibits the Owners Corporation from delegating the powers of a Special Resolution and / or Unanimous Resolution.

An Owners Corporation committee must elect a chairperson. This person also becomes the Owners Corporation chairperson.

All Owners Corporations, committees and delegates are required to:

  • act honestly and in good faith
  • exercise due care and diligence in carrying out their functions, powers and activities
  • not make improper use of their position to gain, directly or indirectly, an advantage for themselves or for any other person (Consumer Affairs Victoria).