VIC: Q&A Owners denied voting rights for ‘unpaid charges’ they never authorised

This article discusses voting rights in an owners corporation and how unpaid charges, even disputed ones, can affect a lot owner’s eligibility to vote under the Owners Corporations Act 2006.

Question: What can owners do if they were denied voting rights for alleged unpaid charges they never authorised?

Some owners were locked out of voting on the basis that they were unfinancial due to alleged monies owing for faulty remotes. The remotes failed because the gate motor reached its limits and ejected existing remotes when new ones were installed. The supplier tested the system and confirmed this was the cause. Despite this, the committee chair and the owners corporation manager ignored the test results. The owners never authorised the on-charges and believe this was a tactic to prevent them from voting out the chair. What can they do?

Answer: Unpaid fees mean any amount owing.

The Owners Corporations Act 2006 covers voting eligibility in Section 89B of the Act;

89B Can a lot owner vote if fees are unpaid?

1. A lot owner who is in arrears for any amount owed to an owners corporation is not entitled to vote (either in person, by ballot or by proxy) on a resolution of the owners corporation unless the amount in arrears is paid in full.
2. Despite subsection (1), a lot owner who is in arrears for any amount owed to an owners corporation may vote on any matter where a special resolution or unanimous resolution is required.
3. For the purposes of subsection (1), the amount in arrears is taken to be paid in full if it is paid to the owners corporation—
   1. in cash; or
   2. otherwise, not less than 4 business days—

   before the lot owner is required to vote on the resolution.

The key wording here is, ‘any amount owed’. If the owners corporation has sold you a remote, and it hasn’t been paid for, and the fee for it has been legally struck, then ‘yes’, this will render you ineligible to vote on ordinary resolutions.

Practically speaking, if you have ordered a remote, FOB or key, the usual process is that you would have to pay for it first. If you have been given the device before making payment, and it is not working, there is perhaps also the viewpoint that the contractor and/or OC shouldn’t have to assist further until they’ve received payment for what was meant to have been paid for originally.

Without knowing more about how the fees were struck and issued, or the specifics of the situation behind it, you may well be better off paying the amount owing at this time, and then once ‘financial’, pursuing either a refund/credit to your account, without having lost your ability to vote.

If the situation is that you paid for a device, the gate motor failed afterwards and you are now stuck with a device that doesn’t work on the replacement motor, the usual practice is for the OC to replace all now-defunct devices at its cost – which, to be honest, is still at owners cost, given owners pay for the levies of course.

Alex McCormick
SOCM
alex@socm.com.au
P: 03 9495 0005

This post appears in the October 2025 edition of The VIC Strata Magazine.

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Read next:

• VIC: Intervention Orders & OC Meetings
• VIC: Q&A Voting on Motions at the Owners Corporation Meeting
• VIC: Q&As Holding Proxies and Majority Owners – Voting, Conflicts

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