We had an AGM and the owners took a vote on the special resolution to be passed for amending the conduct rules. The Portfolio Manager explained that the votes needed to pass the resolution is that 75% of the owners (in number and in value) must vote in favour of the resolution. The Portfolio Manager then after the voting announced that the results will be circulated to all owners the following day and that the meeting should continue to the next point. What is wrong with this scenario?
- Had an AGM – check – this must be done every year within 4 months after the financial yearend of the complex
- Voted on the special resolution – check – special resolutions can only be passed by the owners voting on it
- Need 75% in number and value to pass the special resolution – check – this is correct
- The problem here is the announcing of the votes only the next day. The Act states that the results of all voting should be announced at the meeting. We should never state that the result of the votes will be announced the next day or any day after the meeting
(8) The outcome of each vote, including the number of votes for and against the resolution, must be announced by the chairperson and recorded in the minutes of the meeting.