Abstention on a round robin vote

We are voting for the approval of our Conduct Rules on a Round Robin basis. Our Managing Agent sent the rules per circular to all owners stating that we have until a certain day to vote and should we not vote by that day our silence will be taken as approval of the rules – is this the correct way to do it?

The short answer is No

The longer answer is that you need to consider the definition of a special (or unanimous resolution).  The STSM Act states the following:

  1. Section 1 – Definitions

    “special resolution” means a resolution—

    • passed by at least 75% calculated both in value and in number, of the votes of the members of a body corporate who are represented at a general meeting; or
    • agreed to in writing by members of a body corporate holding at least 75% calculated both in value and in number, of all the votes;
       

    “unanimous resolution” means a resolution—

    • passed unanimously by all the members of the body corporate at a meeting at which—
    • at least 80% calculated both in value and in number, of the votes of all the members of a body corporate are present or represented; and
    • all the members who cast their votes do so in favour of the resolution; or
    • agreed to in writing by all the members of the body corporate.

In both these instances it states – Agreed to in writing.  So they have to vote to be heard.

There is also no provision in the STSM Act that states that an abstention / no vote can be counted as a vote in favor.  Maybe this is where the confusion is coming from as this was a provision in the old Act (but even then it was only for a unanimous resolution)  This is no longer the case.