May I know what is the new zealand corporate body laws to pass ordinary resolution versus special resolution? There is

Expert's Assistant chat

Customer: Hi, May I know what is the new zealand corporate body laws to pass ordinary resolution versus special resolution?
JA: Hi. Have you talked to a New Zealand lawyer about this?
Customer: NO
JA: What steps have been taken so far?
Customer: There is an egm to be held on Monday which is stated as an ordinary resolution to be passed but it should be a special resolution. So how can we change this at the egm meeting?
JA: The Lawyer will be able to walk you through that. Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: We are voting on major legal expenses to be spent for law suite so we feel it should be a special resolution and not ordinary resolution

Answered by Chris The Lawyer in 6 hours 1 year ago

Chris The Lawyer

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Chris The Lawyer

41302 Satisfied customers

10+ years of experience

Chris The Lawyer

10+ years of experience

41302 Satisfied customers

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Chris The Lawyer, Expert

Hi My name is ***** ***** I am a New Zealand lawyer based in Wellingtonwith more than 42 years of experience. I am here to help with your questions.

Chris The Lawyer, Expert

A special resolution requires a 75% majority to pass, but is otherwise the same as an ordinary resolution. So if you do not get the numbers in support the special resolution would not pass. The ordinary resolution just needs a 50% majority

Customer

Hi Chris. My query is what are the items that the ordinary resolution is used for versus special resolution in nz body corporate laws?

Chris The Lawyer, Expert

Those are not specified in the Unit Titles Act

Customer

if an EGM is convene and as members attending the EGM, we disagree that the motions should be under ordinary resolution requiring a simple majority, and that it should be a special resolution requiring 75 % majority, can we , at the start of the meeting, request for a change?

Chris The Lawyer, Expert

You can ask

Customer

matters regarding raising funds for legal fees and starting a legal case is to be classified under ordinary or special resolution? This levy to be raised is over and above the monthly levy imposed on the units.

Chris The Lawyer, Expert

The Act says

101 How matters at general meeting of body corporate decided

(1)

Any matters at a general meeting of a body corporate relating to an exercise of a duty or power that may not be delegated under section 108(2), or that have not been delegated to the body corporate committee, must be decided by special resolution.

(2)

Except as otherwise provided in this Act, all other matters to be decided by the body corporate at a general meeting must be decided by ordinary resolution.

(3)

Any matter that is not on the agenda for a general meeting may be discussed at the meeting but, unless all the eligible voters are present at the meeting, no resolution may be voted on and made in respect of that matter except to include that matter on the agenda for a subsequent general meeting.

(4)

Every resolution must be recorded in writing.

Chris The Lawyer, Expert

If the power to make a special levy has not been delegated to the body corporate committee, then it must be a special resolution

Customer

May I know where can i find this clause in the units title act? I would like to share with fellow members. Thanks

Chris The Lawyer, Expert

That is section 101 and 108

Customer

Are you able to share the link for this act? The latest full version of the Act. Thanks

Chris The Lawyer, Expert

https://www.legislation.govt.nz/act/public/2010/0022/latest/DLM1160440.html?src=qs

Customer

if the motion in the egm is to raise levies for legal fees and to decide on initiating an action against the Auckland council, it would mean that no power has been given to the Body corporate yet, so this motion should be by special resolution . Is my understanding correct?

Chris The Lawyer, Expert

Yes

Customer

can you please review clause 10 of our AGM held last year and see if that has confirmed our agreement that the Body corporate can use ordinary resolution to pass the motion for extra levy imposed during the forthcoming egm? Thanks

Chris The Lawyer, Expert

Those are standard delegations and the special levy should be outside those, therefore requiring a special reso

Customer

Hi Chris, I have been countered on the above reply and they still insist that the AGM powers given citing " Resolved ( by special resolution) : That, in accordance witht he provisions of Section 108(1) of the unit titles act of 2010, all powers and duties of the Body Corporate be delegated to the Body Corporate by section (108)2

Customer

This was in our AGM of last year and voted passed.

Customer

Can you clarify if we have a case to state that additional levy imposition on owners and the decision to pursue litigation falls under this clause ? Appreciate your urgent reply as we have EGM stating in a 50 mins time. Thanks

Chris The Lawyer, Expert

It is still my view that a special resolution is needed. So you need to say at the meeting that they have not done this correctly

Customer

In what way have they not done correctly? Please help

Customer

They are citing 108 delegation of duties and powers to counter us.

Chris The Lawyer, Expert

I am not sure they can delegate this decision as they claim

Customer

is there any clause that will allow us to overturn the AGM decision on such matters, e,g, due to quantum of monies to be raised or that its a legal suite?

Chris The Lawyer, Expert

You can take the decision to the Tenancy TRibunal which deals with unit title disputes

Customer

Noted but we dont have time now as egm stating at 5pm NZ time. If there is a clause we can use to hold them back, at least then we can stop the meeting first. Any clause you can think of?

Chris The Lawyer, Expert

I do not think you can stop the meeting and you will need to tell them you will challenge the decision

Customer

can we call for a poll on this at start of egm?

Chris The Lawyer, Expert

You could, although I do not think that will stop them from continuing

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