In-person owners corporation (OC) meetings offer a fast, efficient way to vote on specific motions. When a quorum is present (usually 50% of committee members), the OC secretary raises the motion, and members vote by a show of hands.
The committee reaches a decision, the secretary records the results in the minutes, and the motion becomes a resolution. That’s it. Next item.
But formally convened committee meetings aren’t always practical, necessary, or viable. In some situations, the ballot vote offers a more logical alternative, even though it requires extra paperwork.
In this post, we’re looking at how an OC ballot works.
When Should An Owners Corporation Committee Vote by Ballot?
There are several situations where a ballot vote makes more sense than voting at the next OC committee meeting.
- Routine decisions: Members already have enough information, and the decision is fairly straightforward (no debate is required).
- Geographical distance: Owners are too spread out to meet in person.
- Low attendance: Not enough owners will attend the next meeting to reach a quorum.
- Urgency: A decision is required before the next scheduled meeting to address an immediate issue, such as urgent maintenance.
A committee meeting is generally better for more complex motions (special levies, disputes, major works), where questions and debate could affect an owner’s vote.
How Does An Owners Corporation Ballot Vote Work?
Under the Owners Corporations Act 2006, a Victorian OC can make a decision outside of a called meeting using a formal written ballot or an electronically circulated resolution.
An OC secretary, who could be the OC manager or another committee member, takes responsibility for organising the ballot. The secretary follows four main steps.
1. Written Notice
The secretary provides formal written notice to all lot owners at least 14 days before the ballot closes. This notice must clearly state:
- Details of the motion
- The available voting methods (mail, email, postage, internet.)
- Guidance on how to submit a vote through each method
- A self-addressed envelope for ballot returns (if postage voting is available)
- The date the ballot was sent and the date a vote must be received
- Information on how to appoint a proxy
- Contact details of the person organising the ballot
2. Voting
For their vote to be valid, owners must not owe any outstanding fees or levies to the OC (unless there has been a special resolution). Eligible owners can cast votes via email, telephone, post, fax or a digital online portal, depending on the methods approved under OC rules.
The OC secretary must receive a vote by the deadline; otherwise, it will be considered informal (invalid). Owners should consider postage times when mailing ballots.
Only a lot owner, or someone holding a proxy or power of attorney for a lot owner, can vote.
3. Counting Votes
The rules for counting ballot votes depend on whether it’s a ballot of all owners or a ballot held by the committee.
For a ballot of all owners, votes are counted by lots, with one vote per lot. Owners who hold multiple lots get a vote for each lot, while joint owners of a single lot share one vote between them. An ordinary resolution passes if a majority of the votes returned by the closing date are in favour, provided the number of votes returned meets the quorum requirement. Special and unanimous resolutions have higher thresholds, measured against the lot entitlements of all lots in the owners corporation. A special resolution needs 75 per cent, and a unanimous resolution needs 100 per cent.
For a committee ballot, the count is much simpler. Each committee member gets one vote, and the resolution passes only if a majority of committee members state they are in favour before the closing date.
If the vote is deadlocked in a ballot of all owners, the chairperson can exercise a casting vote, but only if they are a lot owner or an authorised proxy. If they choose not to use it, the resolution fails. For committee ballots, a tied vote means the resolution simply doesn’t pass, as it requires a majority of members in favour.
Voting Instructions: How To Cast An Owners Corporation Ballot
The voting process depends on the chosen method.
Written ballots (mail, fax, or email)
Owners complete the Owners corporation ballot instructions and attach documentation regarding proxies or power of attorney, if required.
Documentation gets sent to the OC secretary via fax, email, or post.
Electronic voting and circulating resolution
Owners can also vote over the internet, whether by email or through an online voting platform, as the Act allows ballots to be conducted by any form of electronic communication.
Another electronic option is a circulating resolution, where each owner registers their vote on a shared document before forwarding it to the next owner. The resolution passes as soon as the eligible votes reach the required threshold.
Ballot Voting Thresholds
The thresholds for a ballot of all owners are set out in section 86 of the Act:
- Ordinary resolution: A majority of the votes returned by the closing date must be in favour. There is also a minimum participation requirement, as the number of votes returned must be at least the quorum for a general meeting (50 per cent of the total lots, or 50 per cent of total lot entitlements if that can’t be reached)
- Special resolution: At least 75 per cent of the total lot entitlements. An interim special resolution occurs when at least 50 per cent vote in favour and no more than 25 per cent vote against
- Unanimous resolution: 100 per cent of the total lot entitlements
Committee ballots work differently. A resolution voted on by committee ballot passes only if a majority of committee members state they are in favour before the closing date.
Understanding Proxies
Owners can authorise a proxy to represent them at committee meetings and vote on their behalf in a ballot. To nominate a proxy, the owner must complete an Owners Corporation Proxy form and submit it to the OC secretary. A proxy will lapse after 12 months.
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