The schedule of lot liability and lot entitlement is part of every plan of subdivision. For more information about what a plan of subdivision is, who creates it, and when it is registered, click here.
The lot entitlement expresses the lot owner’s interest in the owners corporation, and is used when calculating poll votes at a general meeting, and Special Resolution votes whether at a general meeting, or in a ballot.
Once a plan of subdivision is registered, the schedule of lot liability and entitlement can only be amended by a Unanimous Resolution, where 100% of lot owners are all in agreement.
A lot liability and lot entitlement schedule could look like this, for a plan with four lots:
Lot Number Liability Entitlement
1 20 20
2 30 35
3 40 35
4 10 10
Total 100 100
The schedule of lot liability is discussed here. Let's look here only at the the schedule of entitlement.
The schedule of lot entitlement is used to calculate owners corporation votes, for either a poll vote or a Special Resolution. It is also used to calculate whether a quorum is present at an AGM or SGM.
For any resolution of an owners corporation, there is one vote cast per lot. However, if a poll vote is called, or in the case of a Special Resolution, votes are counted according to lot entitlement. Using the schedule of entitlement above, we can see how this can affect the outcome of a vote.
Let’s imagine a motion is voted on at a general meeting, where the owner of lot 1 and lot 4 vote in favour, the owner of lot 2 votes against, and the owner of lot 3 abstains. We can compare the voting results using one vote per lot, or using a poll vote.
Votes for: Votes against: Abstentions:
Lot 1 Lot 2 Lot 3
Lot 4
We can see here that there are two votes in favour, and one vote against, which results in the resolution being carried.
However, if the owner of Lot 2 then calls for a poll vote and votes are cast using lots of entitlement, the result can change, even though each owner is voting the same as before:
Votes for: Votes against: Abstentions:
Lot 4 (10 entitlement units)
There is a total of 30 votes for, and 35 against, which means that the resolution fails.
This means that sometimes, voting via a poll vote can change the outcome versus voting in the standard manner of one vote per lot.
Important: A poll vote, where lot entitlement is used to calculate the total vote, can be requested by any owner or proxy holder at any time in a General Meeting, even after the regular vote has been held, and counted. If a poll vote is called for a particular motion, the original vote for that motion is declared null and void, and only the result of the poll vote stands.
Poll votes are not to be called in committee meetings. For a committee meeting, all votes are only ever one vote per lot.
The guide below can assist with knowing when to use poll votes and the lot entitlement schedule, and when to count one vote per lot:
General Resolution at a committee meeting One vote per lot only
General resolution at an AGM or SGM One vote per lot as standard, unless poll vote is called
General resolution via a ballot One vote per lot as standard, unless poll vote is called
Special Resolution (via ballot or meeting) Poll vote
For more information on voting governance, contact Melb OC.