Group of same issue motions transcript

After extensive stakeholder and community consultation, which included our input, and recommendations made by the panel on the Queensland University of Technology property law review, the body corporate and community management regulations were remade on 29 September 2020. They will come into effect on 1 March 2021.

This video explains ‘group of same-issue motions’ in more detail, previously known as a motion with alternatives under the expiring standard module.

Expiring standard module

Under the expiring Standard Module, a motion with alternatives provides a way to combine original motions submitted by lot owners about the same issue into a single motion.

The committee is responsible for combining the original motions into a ‘motion with alternatives’ for the agenda of the general meeting.

However, the rules for deciding outcomes lack clarity, for example, what happens where the alternatives require different resolution types, such as an ordinary or special resolution. Also, voters are restricted to a choice of only one alternative.

Expiring standard module - example of motion with alternatives

This is an example of a motion with alternatives under the expiring standard module. In this example, 2 motions were received about the engagement of a body corporate manager. The committee has combined the two motions into a motion with alternatives.

To vote, the voter first votes on the motion to engage a body corporate manager. If they vote yes to the motion, they then tick an alternative. If the motion passes, then the alternative with the highest number of votes wins. This example is quite straightforward, but in some cases, it can be quite complex and confusing.

This has prompted a change under the new Standard Module.

New

Under the new Standard Module, if 2 or more motions are submitted, proposing different ways of dealing with the same issue, the committee must list the original motions together on the agenda of the general meeting as a ‘group of same-issue motions’, instead of a motion with alternatives.

Flow chart

This flow chart shows how a group of same-issue motions is resolved.

• Firstly, the motions are listed on the agenda under the title of ‘group of same-issue motions’.
• A voter casts a vote for or against one or more of the original motions.
• The votes are then counted to see if each original motion passes or fails
• If an original motion receives enough votes to pass, then it becomes a qualifying motion.
• If there is only 1 qualifying motion, that motion is the decision of the body corporate.
• If there is more than 1 qualifying motion the motion, the votes in favour of each motion are counted.
• If a motion received the highest number of votes in favour, it becomes the body corporate’s decision.
• If 2 or more motions receive equal highest number of votes in favour, the votes are counted against the motion
• If a motion receives the fewest votes against the motion, it becomes the body corporate’s decision
• If more than 1 motion receives equal highest of votes in favour and equal highest number of votes against, the decision is made by chance, for example. the toss of a coin

Group of same issue motions – example 1

Here is an example of deciding the outcome of a group of same-issue motions regarding the replacement of a boundary fence in a scheme of 20 lots. This example is similar to the example provided in the new Standard Module.

You can see the 3 original motions. Motion A is replacing the fence with a colorbond fence and requires a special resolution, Motion B is replacing the fence with a hardwood fence and also requires a special resolution, while motion C – replacing the fence with a treated pine fence requires an ordinary resolution.

You can see in the example that all 3 motions have passed and have therefore become qualifying motions. As there is more than 1 qualifying motion, next the body corporate counts the votes in favour of each motion. If a motion receives the highest number of votes in favour, it becomes the body corporate’s decision. Therefore, original motion A is the decision of the body corporate as it has the highest number of votes in favour of the motion at 15 votes.

Group of same issue motions – example 2

Here is another example regarding a roof. Original motion A is to repair the roof by ordinary resolution. Motion B is to replace the roof with a colorbond roof, by special resolution and motion C is to replace the roof with a new tiled roof by special resolution. The votes are counted and Motion B has failed, which means that only motion A and motion C become qualifying motions.

The next step is to count the votes in favour of each qualifying motion. Motion A and Motion C both have equal number of yes votes. So, the next step is to count the votes against the motion. The motion with the least votes against becomes the body corporate’s decision. Which means that Motion A is the decision of the body corporate as it has only 2 votes against.

Group of same issue motions – example 3

Here is the same example using the roof, except this time there are 2 qualifying motions with equal numbers of votes in favour and against.

In the event that 2 or more qualifying motions have equal numbers of votes in favour and against, the decision is made by chance, for example, the toss of a coin.

Explanatory schedule

Under the expiring Standard Module, an explanatory schedule is required when there is a motion with alternatives. Under the new Standard Module, an explanatory schedule must be sent with the agenda for a general meeting that includes a group of same-issue motions. The explanatory schedule must advise voters how a group of same issue motions will be dealt with.

The explanatory schedule must include:

• the title of the group as shown on the agenda
• a list of each motion that is a part of the group
• each original motion as it was submitted
• an explanatory note about each motion given by the original submitter of the motion – not longer than 300 words
• an explanatory note stating
  • that voters can vote on each motion in the group
  • that votes are counted for all the motions in the group before the body corporates decision is determined
  • that if a motion received the required number of votes to pass the motion qualifies to be a decision of the body corporate
  • that an original motion cannot be amended at the general meeting
  • that if no original motion receives sufficient votes to pass, the decision of the body corporate is that none of the original motions are passed.

Voting papers

The new Standard Module outlines the requirements for voting papers for a group of same-issue motions. The motions must appear under the heading ‘group of same-issue motions’ and be presented in an order starting with motions that require a resolution without dissent, then special resolution, majority resolution and then ordinary resolution.

If 2 or more motions that are part of the group of same-issue motions are to be decided by secret ballot, they must appear on 1 secret voting paper.

To remove any doubt it is declared that if a group of same-issue motions includes open motions and motions to be decided by secret ballot, the voting paper for the open motions must only list the open motions and the secret voting paper must only list the motions to be decided by secret ballot.

Other

And lastly, some additional things to note. The chairperson cannot rule an original motion as part of a group of same issue motions out of order simply if another original motion is out of order. The other motions may still be considered.

Also, an original motion that is an original motion in a group of same issue motions cannot be amended at the meeting.

If more than 1 motion appears on the agenda about the same issue and have not been listed as an original motion as part of a group of same-issue motions, the motions about the issue are void.

While it might appear that the provisions in the new Standard Module appear harder to grasp due to the number of steps involved, once you unpack the different elements and put it into practice it becomes surprisingly simple. We hope that this video has provided some additional clarity.

Contact us

You can find more information about the new regulations by visiting the shortened URL www.qld.gov.au/bodycorp-regchanges

If you have more questions you can contact our office by telephone or send us an online enquiry via our website.

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