Rescinding AGM Resolutions at an EGM – NSW

A recent FAQ from a committee member to SSKB raised an interesting question – can a resolution from an AGM or part thereof,  be rescinded by the Owners Corporation executive committee at a subsequent general meeting?

This is an important question – if a mistake is made in an Annual General Meeting and needs to be rectified urgently at the next meeting (an Extraordinary General Meeting), does the committee and the lot owners present have the power to rescind the resolution in favour of a new one?

The answer to this question varies significantly between the differing states and their legislation.

In New South Wales, section 23 of the Strata Schemes Management Act 1996 (Schedule 2) deals with the amendment or revocation of unanimous or special resolutions. Under the section, a unanimous resolution or special resolution of an owners corporation may not be amended or revoked, unless it is by a subsequent unanimous resolution or special resolution. However, a unanimous resolution of an owners corporation dealing with common property need only be amended by a special resolution.

Whilst the legislation specifically deals with special resolutions with no mention of ordinary resolutions, a subsequent ordinary resolution motion would be sufficient to rescind the first, provided the resolution is reached by the majority.

When determining whether the motion can be rescinded, it may dependent upon the nature of the specific item. It may come down to an owner having to file an application with NCAT to stop enforcement of the motion. For example if the motion passed is for external painting of a scheme, a lot owner may perhaps decide they want to rescind a motion approving a specific colour scheme. It would be likely at least part of the work would have started before they could call a second general meeting. In such a case, filing an application with NCAT they would most likely make an interim ruling stopping the motion from being enacted upon.

If you have questions or require specialist advice on the intricacies of committee decisions in your scheme, talk to SSKB. Our experienced and professional team can provide you with advice tailored specifically to the needs of you and your property.

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