I often get asked about the type of resolution needed for a specific case scenario in a Sectional Title Scheme. Also get questions on how these resolutions can be obtained
In short, there are four types of resolutions pertaining to a Sectional Title scheme. One is a Trustee resolution (where the owners are not consulted) and the other three are Body Corporate resolutions – in other words, resolutions by the owners – namely the ordinary resolution; special resolution and unanimous resolution.
The STSM Act stipulates exactly when each resolution is required. If it does not stipulate that the Body Corporate would need to pass a special or unanimous resolution then an ordinary resolution will be needed.
We have an Easy Guide to resolutions that explains in detail how to achieve the different Body Corporate resolutions – this is available on request.
In summary the following:
- Trustee resolution – This is a resolution passed by the majority of the Trustees – This can be done at a meeting or on a round-robin basis
- Ordinary resolution – This is a resolution passed by the majority of the owners – This can only be done at a meeting – There is no provision in the STSM Act for this resolution to be passed on a round-robin basis
- Special resolution – This can be done at a meeting or on a round-robin basis
- Unanimous resolution – This can be done at a meeting or on a round-robin basis
The STSM Act also makes provisions for instances where written permission from all owners is needed – this is not the same as a unanimous resolution.