NSW EGM and Voting Motions

We just had an EGM to vote on the NSW EV charging grant scheme.

My question is about how to structure the motions when there are options generally so I’ll just use this EGM about EV charging as the example. (I’ve removed the lot numbers and just put the number of unit that voted (I know this doesn’t show entitlement but my question relates more to the structure of the motions).

How should Motions 5 and 6 be structured when they are essentially just a choice between one or the other? Owners have said that they preferred Quote 2 but would have been happy with Quote 1 – it just wasn’t their first choice.

This half voted for Quote 1 and half for Quote 2, neither passed.

How should this be handled in the future?

  1. Motion authorising submission of Grant Application and appointment of Authorised Representative
    The owners corporation RESOLVED to submit a Grant Application to the ECCS Group and to appoint the
    Authorised Representative as its representative for the purposes of that application.
    Voting result
    Lots voted for: 14
    Lots voted against: 6
    Lots abstained from voting: Nil

  2. Motion authorising Funding Agreement
    The owners corporation RESOLVED if its Grant Application is successful, to enter into a Funding Agreement
    with the Crown in the right of New South Wales acting through the Department of Climate Change, Energy, the
    Environment and Water.
    Voting result
    Lots voted for: 14
    Lots voted against: 6
    Lots abstained from voting: Nil

  3. Motion to approve EV Charging Infrastructure works to common property
    THE MOTION “The owners corporation SPECIALLY RESOLVES if its Grant Application is successful, to
    authorise the installation of the EV Charging Infrastructure on the common property, having first considered:
    (a) its cost and the expected running and maintenance expenses;
    (b) that the owners corporation will own, install and maintain it; and
    (c) that it will be available for use by all owners and occupiers of lots in the strata scheme.” WAS
    DEFEATED
    Voting result
    Lots voted for: 14
    Lots voted against: 6
    Lots abstained from voting: Nil
    Total Unit Entitlements (UE’s) Eligible to vote: 1,391
    Total UE’s voted for: 1011
    Total UE’s voted against: 380
    Total UE’s abstained from voting: 0
    Therefore the motion was defeated.

  4. Motion to accept quote for works – Quote 1
    THE MOTION “The owners corporation RESOLVES if its Grant Application is successful, to accept the Preferred
    Quote for the installation of the EV Charging Infrastructure and to engage the contractor to perform that work.
    Quote 1
    – Vendor 1 – $15,000 including GST” WAS DEFEATED
    Voting result
    Lots voted for: 6
    Lots voted against: 13
    Lots abstained from voting: 1

  5. Motion to accept quote for works – Quote 2
    THE MOTION “The owners corporation RESOLVES if its Grant Application is successful, to accept the Preferred
    Quote for the installation of the EV Charging Infrastructure and to engage the contractor to perform that work.
    Quote 2
    – Vendor 2 – $13,000 including GST” WAS DEFEATED
    Voting result
    Lots voted for: 8
    Lots voted against: 11
    Lots abstained from voting: 1

  6. Motion authorising affixing of seal
    The owners corporation RESOLVED to authorise the affixing of the owners corporation’s seal to any document
    required to give effect to a resolution made pursuant to motions 2 to 5 above.
    Voting result
    Lots voted for: 14
    Lots voted against:6
    Lots abstained from voting: Nil

**Also, note that motion 4 actually passes because whilst a special resolution, the law in NSW changed and EV chargers fall into the category of "sustainability infrastructure upgrade" where only more than 50% of the vote is needed for a motion to pass.

Comments

  • +3

    Are you talking about a strata general meeting?

    • A special EGM was called

      • +1

        I mean, are you talking about a strata body corporate governance?
        Not a company title or something else?

  • +7

    How should this be handled in the future?

    On a bargain site

    • I mean, why not?
      It is in relation to a government grant to save us money installing EV chargers ;)

  • +1

    This is what chatgpt said:

    In situations like this where there are multiple quotes being voted on, and one is preferred over the other but neither passes, it can be tricky to structure the motions in a way that captures the consensus of the group.

    Here are a few ways to structure motions in future EGMs to avoid this kind of outcome:

    1. Sequential Voting with Conditional Acceptance
      Structure the voting process so that the decision is made in a tiered fashion. This way, if the preferred option doesn’t pass, there is a fallback option.

    Example:

    Motion 1: “The owners corporation RESOLVES to accept Quote 2 as the preferred quote for the installation of the EV Charging Infrastructure.”
    Motion 2 (conditional): “If Motion 1 does not pass, the owners corporation RESOLVES to accept Quote 1 as an alternative for the installation of the EV Charging Infrastructure.”
    This would allow a fallback option (Quote 1) to be considered if Quote 2 does not pass, avoiding a scenario where no decision is made.

    1. Single Motion with Multiple Options
      Another approach could be to bundle both quotes into a single motion and allow the owners to indicate their preference directly.

    Example:

    Motion: “The owners corporation RESOLVES to select a quote for the installation of the EV Charging Infrastructure, with the following options:
    Quote 1 (Vendor 1 – $15,000 including GST)
    Quote 2 (Vendor 2 – $13,000 including GST)
    Owners vote on their preferred option.”
    After the vote, whichever option receives the majority is selected. This avoids the issue of two separate motions that might both fail.

    1. Runoff Voting
      If the group is split and there’s a preference but not a strong enough majority for either quote, you can adopt a runoff voting system. Owners first vote on both quotes. If neither receives a majority, a second vote is held between the two options, or between the more popular options from the first round.

    2. Survey or Discussion Prior to the Meeting
      Another possibility is to conduct a survey or an informal discussion before the meeting to see if a majority of owners favor one quote over the other. This could inform the structuring of motions or eliminate unnecessary motions that are unlikely to pass.

    3. Motion to Accept a Range of Quotes
      The motion could also be designed to authorize a range of quotes instead of picking one specific quote.

    Example:

    Motion: "The owners corporation RESOLVES to approve a budget range of $13,000 to $15,000 for the installation of EV Charging Infrastructure and authorizes the committee to select the most appropriate contractor within this budget."
    This allows flexibility in case negotiations or further considerations are required, especially if quotes are relatively similar.

    By adjusting the structure of the motions, you can make it easier to ensure that some form of consensus is reached and avoid situations where neither option is approved, delaying the project.

    Hope this helps.

  • Welcome to ozfreestralegaladvice

  • Read the model rules is the best outcome for you

  • +1

    The logic of what you have presented is that while motion 4 has passed, the meeting was not satisfied with either motion 5 or 6 (even though they are some what consequential to motion 4).

    I can only assume that the quotes contained within motions 5 and 6 were unacceptable … logic does not require you to accept 5 or 6 simply because you have accepted 4.

    The complete set of resolutions should (presumably) then include that further quotes for the works contemplated will be sought and that a decision on the engagement of a contractor will be contingent on the receipt of those quotes and any other information necessary to make that decision.

    • "I can only assume that the quotes contained within motions 5 and 6 were unacceptable … logic does not require you to accept 5 or 6 simply because you have accepted 4."

      Partially correct, but as mentioned, it turns out most people would have been happy with either quote

      • the majority 'against' votes suggest otherwise

        • Not true.
          When the votes where announced, everyone said that they thought they could only vote for one and against the other, which is logically.
          Thats what some of us owners are trying to understand how the Strata Manager could word and structure motions going forward to remain compliant with the Act but allow people give a ranking of their 1st and 2nd choice if they wish to.

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