In strata living, decisions about budgets, by-laws, maintenance, or improvements are made through resolutions passed at meetings of the Owners Corporation. But not all resolutions are equal. The Strata Schemes Management Act 2015 (NSW) outlines three main types — ordinary, special, and unanimous resolutions — each with different voting requirements and implications for how your scheme operates.

Understanding which type of resolution applies helps owners make informed decisions, ensures compliance with the law, and prevents disputes later. Here’s a breakdown of what each one means, when it’s used, and how voting works.

Ordinary Resolutions: The Everyday Decisions

Ordinary resolutions cover the vast majority of matters discussed at a general meeting. These are the routine, day-to-day decisions that keep your strata scheme running smoothly — like approving annual budgets, appointing a strata manager, or authorising small maintenance works.

To pass an ordinary resolution, more than 50% of eligible votes cast (in person, by proxy, or electronically) must be in favour of the motion. It’s a simple majority rule.

Example: If 10 eligible owners vote and 6 vote “yes,” the motion passes. If only 5 vote “yes,” it fails.

Importantly, if an ordinary resolution has already been passed, it can only be overturned by another ordinary resolution — not a special or unanimous one. This ensures consistency and transparency in the decision-making process.

Special Resolutions: Major Decisions with Bigger Impact

Special resolutions apply to more significant decisions that can alter the rights, obligations, or structure of the strata scheme. They often involve long-term financial or legal implications for owners, so the voting threshold is higher.

Common examples of motions requiring a special resolution include:

• Making or amending by-laws (e.g., pet rules, parking restrictions, or renovation approvals)
• Authorising alterations or additions to common property
• Waiving interest on overdue levies
• Approving major works or shared-use agreements with third parties

For a special resolution to pass, no more than 25% of the total unit entitlements represented at the meeting can vote against it.

Example: Imagine your building has 130 total unit entitlements across 7 lots:

Lot	Unit Entitlement
1	10
2	15
3	15
4	20
5	20
6	25
7	25

In this example, one-quarter of the total unit entitlements (¼ × 130 = 33) represents the maximum “no” votes allowed. If votes against the motion exceed 33 unit entitlements, the resolution fails.

This weighted system ensures that larger lot owners (with higher unit entitlements) have proportional influence, while still maintaining fairness and preventing small groups from blocking progress without reason.

Unanimous Resolutions: When Every Vote Counts

Unanimous resolutions are reserved for the most consequential decisions in a strata scheme — the ones that fundamentally change its structure or existence. For these motions, every eligible vote must be in favour. Even a single dissenting vote means the resolution fails.

Typical examples include:

• Winding up (terminating) a strata scheme
• Selling or disposing of the entire property
• Distributing surplus funds after a scheme is terminated

Unlike ordinary or special resolutions, owners do not need to be “financial” — i.e., up to date with levies — to participate in a unanimous resolution. This ensures all owners have a say in decisions that affect the future of the entire scheme.

Why Understanding Resolution Types Matters

Knowing the difference between these resolution types is essential for both strata committees and individual owners. Passing a motion under the wrong category can lead to legal challenges, invalid decisions, or financial exposure for the Owners Corporation.

For instance, approving structural works as an ordinary resolution (when it legally requires a special one) could render the decision invalid — and may even expose the committee to liability if disputes arise.

That’s why meeting agendas clearly identify which motions require which type of resolution. These agendas are circulated to all owners, mortgagees, and covenant chargees listed on the strata roll prior to each general meeting, giving everyone time to understand and prepare their vote.

Final Word

Resolutions are the backbone of strata governance. They determine how your scheme operates, how funds are spent, and how community decisions are made. Understanding the thresholds — ordinary (simple majority), special (75% approval), and unanimous (100% agreement) — helps every owner participate effectively and ensures your scheme remains compliant with NSW law.