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UOAQ's Hotline: General meeting motion ruled out of order

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Our helpline receives many queries from our members and public every day. Whilst some relate to the particulars of the scheme or owner involved, there are many which can benefit all our members.

 

Q.  I believe that one of the motions for our upcoming AGM is out of order.  What should happen on the meeting?

A.

The general meetings are chaired by the Chairperson of the committee if they are in attendance.  If the chairperson is not at the meeting, people at the meeting who have a right to vote can choose another person to chair the meeting.

One of the duties of the Chairperson of the meeting is, where necessary, to rule a motion out of order.

The legislation (Modules Regulations) prescribes very specifically (s 81 SM, s 79 AM) when the motion must be ruled out of order. The Chairperson of the meeting must rule a motion out of order when a motion, if carried, would:

  • conflict with the legislation (Body Corporate and Community Management Act 1997), applicable Regulation, the body corporate by-laws or another motion already voted on at the meeting,
  • would be unlawful or unenforceable for another reason, or
  • the substance of the motion was not included on the agenda for the meeting

If the Chairperson of the meeting rules motion out of order, they

(a) must give reasons for such ruling, and

(b) this must be recorded in the minutes of the meeting. 

The reasons for the ruling are best described by the reference to one of the above reasons and supported by the parts of the legislation Chairperson refers to (e.g. provisions of the Act).

The Chairperson of the meeting must also state to the floor how the ruling may be reversed by the persons present and entitled to vote on the motion.  The reversal can be done by passing and ordinary resolution (show of hands) disagreeing with the ruling.  For such procedural motion proxy forms are allowed.

Any decision of the body corporate (motion passed on general meetings) can be disputed by any owner.  The time limit of the adjudication application is within 3 months after the meeting (s. 242 of the Act), however, the adjudicator may, for good reasons, waive the time noncompliance.