Before an Owners Corporation (OC) in Victoria can change its management company, it must first meet a quorum. A quorum is the minimum number of owners who must be represented for a decision to be valid. Without this, any vote to appoint or remove a manager has no legal effect.
We explain how quorum is defined under the Owners Corporations Act 2006 and the steps your OC must take to meet this requirement when changing management companies.
Key Takeaways:
- Changing OC managers requires quorum with at least 50% of lots or lot entitlements represented. Without it any vote to appoint or remove a manager is not valid.
- A simple majority ordinary resolution is needed to change managers whether at a meeting or by ballot. This only counts when quorum and notice rules are met.
- Missing quorum can delay decisions and cause disputes. Strong owner participation helps ensure a smooth and valid change of management.
Understanding quorum in an OC
In an OC, quorum is required to determine whether a meeting can make official decisions. It helps establish that motions affecting the property are made with enough owner participation to represent the broader community.
If a meeting doesn’t reach quorum, any motion passed including one to appoint or remove an OC manager is not legally valid and has no effect.
Under Section 77 of the Act, a quorum is reached when:
“At least 50% of the total number of lots or if 50% of the total number of lots is not available the quorum is at least 50% of the total lot entitlement.”
In practical terms, if your OC has 20 lots, at least 10 owners or owners representing half of the total lot entitlements must take part. That can be in person, by proxy or through a written vote.
How owners can make a valid resolution to change body corporate managers
Terminating or appointing an OC manager is usually decided by an ordinary resolution of the OC, not a special one. An ordinary resolution passes when more than 50% of votes cast are in favour of the motion.
Under the Act, an ordinary resolution can be made in the following ways:
- at the Annual General Meeting (AGM)
- at a Special General Meeting (SGM)
- by ballot of the OC in accordance with Section 83
- at a Committee meeting under Section 108
- by Committee ballot under Section 111
This flexibility allows OCs to make valid decisions in person or through written ballots, provided quorum and notice requirements are met.
Who can decide to change the body corporate manager?
In some OCs, the Committee can change the manager without needing all owners to vote. This is only possible when the OC has formally delegated that power to the Committee at a previous meeting.
If this delegation exists, the Committee can make the decision on its own without requiring a general meeting of all owners.
Why quorum and procedure matter
Meeting quorum and following the correct procedures are central to the validity of OC decisions. When these requirements are not met, the OC may face outcomes such as:
- invalid resolutions that must be re-held
- disputes among owners or with outgoing managers
- delays in changing management and potential contractual complications
Complying with the relevant sections of the Act helps confirm that your decision to change management is legally sound and properly carried out.
How you can help your OC reach quorum
It’s important for an OC to reach quorum so decisions can be made properly. While the legal requirements are fixed, owners can still help the OC meet them by taking the following steps.
Attend meetings where possible
Turning up to meetings is the simplest and most direct way to contribute to quorum and take part in decisions affecting your property.
Appoint a proxy if you cannot attend
If you’re unavailable, nominating a proxy means your vote still counts toward quorum and the final decision.
Submit written votes or ballots
Where written voting or ballot options are offered, returning your vote on time helps the OC reach quorum and finalise decisions without delay.
Engage with meeting notices
Reading agendas and notices helps owners stay informed and ready to participate in upcoming decisions.
Encourage other owners to participate
Quorum is often missed due to low engagement. A simple reminder to neighbours or fellow owners can significantly increase participation.
By staying involved, owners help their OC move important decisions forward with fewer disruptions.
Ready to choose a new management company for your OC?
After your OC meets quorum and makes a valid resolution, the next step is selecting a management company that aligns with its needs.
At Change Body Corporate, we help OCs compare providers, understand service differences and find a manager who is a better fit for their property.
Visit us here when your OC is ready to change to a new management company.
