Under the Unit Titles Act 2010, owners of what share of the principal units can require an extraordinary general meeting to be held?
Correct Answer
C) 25%
Section 89A of the Unit Titles Act 2010 says an extraordinary general meeting must be held if the chairperson receives a notice signed by or on behalf of the owners of at least 25% of the principal units asking for one. The threshold is counted by number of principal units, not by ownership interest. The chairperson or committee can also call an EGM at other times (s 90).
Why This Is the Correct Answer
Section 89A of the Unit Titles Act 2010 requires an extraordinary general meeting if the chairperson receives a notice, signed by or for owners of not less than 25% of the principal units, asking for a meeting to decide proposed motions. The count is by number of principal units, not ownership interest.
Why the Other Options Are Wrong
Option A: 10%
10% is too low. Section 89A needs a notice signed by or for owners of at least 25% of the principal units.
Option B: 15%
15% is not the statutory figure; section 89A sets 25% of the principal units.
Option D: 33%
One third is not the threshold; the Act sets 25% of the principal units.
Deep Analysis of This Property Law Question
The Unit Titles Act 2010 establishes governance frameworks for body corporate operations in multi-unit developments. The 25% threshold for requisitioning general meetings represents a carefully balanced approach to democratic participation and practical management. This percentage ensures that a meaningful minority of unit owners can initiate important discussions without allowing trivial complaints to disrupt operations. The threshold prevents abuse by individual owners while ensuring legitimate concerns can be addressed collectively. This provision is crucial for maintaining effective governance in unit title developments, as it provides a mechanism for owners to address issues when the body corporate committee may be unresponsive or when significant matters require broader discussion. The 25% requirement reflects legislative intent to balance efficiency with democratic participation, ensuring that substantial ownership interests can drive necessary meetings while preventing frivolous or vexatious requests that could burden the body corporate with unnecessary administrative costs and disruption.
Background Knowledge for Property Law
Body corporate meetings are either annual or extraordinary general meetings (s 88). The first AGM must be held within 6 months of the unit plan being deposited or the first sale settling, then yearly and no more than 15 months apart (s 89). Owners of at least 25% of the principal units can require an EGM (s 89A), and the chairperson or committee can call one at any time (s 90).
Memory Technique
Remember 'a quarter of the units': one in four principal units signing a notice can require an EGM. Count units, not ownership interest.
When you see questions about requisitioning body corporate meetings, immediately think 'Quarter Power' and recall that 25% is the magic number. This helps distinguish it from other percentage thresholds in property law.
Exam Tip for Property Law
The 25% threshold in section 89A counts principal units. Options or explanations that measure it by ownership interest are wrong.
Real World Application in Property Law
In a 20-unit block, owners of 5 units are unhappy with the maintenance contractor. They sign a notice asking the chairperson for an EGM to vote on replacing the contractor. Because 5 of 20 is 25% of the principal units, the chairperson must call the meeting in line with the regulations.
Common Mistakes to Avoid on Property Law Questions
- •Measuring the threshold by ownership interest instead of principal units
- •Confusing 25% with the 75% special-resolution figure
- •Thinking only the committee can call an EGM
Related Topics & Key Terms
Key Terms:
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