Question:
We live in a sectional title complex with 25 units. At the Annual General Meeting (AGM) ? with five voters and six proxies present ? a decision was taken regarding the pension for our General Worker. Since the AGM there has been a lot of dissent. Some not in favour of the decision want to change it, despite the fact that they were not present at the AGM.

Is there a way in which a decision or resolution can be revoked? Did the five owners and six proxies present for a complex of 25 units constitute a quorum?

We called a special meeting and those who are unhappy stayed away to show they were not interested in the decision being implemented. I think this is a backward way of showing their unhappiness.

I'm thinking about going to each person to get them to voice their objection, and then fill in a ballot form. Is this a way to go or is it illegal? Could this be used in a way in which the decision could be revoked?

Answer:
When it comes to discretionary expenses like pensions, one often finds that the members of bodies corporate have widely differing views.

Quorum

In terms of prescribed management rule 57, if a scheme has 11 to 49 units, as yours does, then owners holding at least 35 percent of the votes must be present or represented at the meeting in order to form a quorum. So provided the 11 owners present and represented at the AGM held 35 percent of the voting values according to the participation quota schedule or the section 32(4) determination (if such a rule exists) then there was a quorum present.

Rescission of resolution

It is possible for a meeting subsequent to the AGM where the resolution was adopted to rescind that resolution. From your question it sounds as if this decision was taken some time ago so before this decision can be rescinded I suggest that you check whether the trustees have partially or fully implemented this decision and whether or not the body corporate's general worker has been informed of this decision. The reason why I raise these issues is because it is possible that if the trustees have implemented this decision and the general worker is aware of it, the body corporate may have undertaken contractual and/or labour law obligations which will need to be taken into account before the decision can be rescinded.

The prescribed rules do not require any special procedures for rescinding prior resolutions, so generally speaking resolutions taken are not entrenched except to the extent that they can only be reversed or amended by the same level of agreement by which they were required to be made.

You have no obligation to get each owner who objects to the resolution to voice their objection and you should not get owners to fill in ballot forms as it is not possible for the decision to rescind the resolution to be taken by round robin procedure. It has to be done at a subsequent meeting and by the same level of agreement by which the resolution was passed in order for it to be effective.

My advice to you? If you are happy with the resolution as it stands, don?t do anything. The resolution is valid until it is properly rescinded and if the owners who disagree with it show their dissent by not attending meetings then the chances of it actually getting rescinded are slim.

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