If a member believes that a motion they support was not passed because of opposition that is fundamentally unreasonable, he or she is able to declare a dispute and, if necessary, bring an application to have the motion, or a variation of it, passed.
In terms of section 39 (4) (d) of the CSOS Act, an application may be for:
“an order declaring that a motion for resolution considered by a general meeting of the association was not passed because the opposition to the motion was unreasonable under the circumstances, and giving effect to the motion as was originally proposed, or a variation of the motion proposed”
Examples of issues
There are many instances in which a person may believe that a proposal put to a general meeting has been unfairly frustrated and that the opposition was unreasonable.
This widely-phrased type of order could, for example be the basis of an application by 45% of the shareholders in a share block company who want the company to raise a special levy to install a substantial security system, but cannot get the 50% support required under the company’s memorandum of incorporation for improvements. These shareholders can apply to the CSOS for relief.
Example of order
An order that:
1. the member opposition at the member meeting held on (insert date) to the motion to approve improvements to Blackwater Share Blocks’s main security gate was unreasonable under the circumstances , and
2. this order has the effect passing a resolution in the terms set out in Annex “A”, the wording in which the motion as was originally proposed.
Is this not the right order – is either the type or category is wrong for your matter?
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