# Voting rights: 2 units 2 votes? Developer 30 unsold units - 30 Votes?



## longsightm13 (25 Jul 2009)

Our memo & arts. specifically state 'every member shall have one vote'. This is the only reference to voting rights in the M&As. 
I have 2 (what some may perceive to be silly) questions:
Q1. If an individual owns 2 units, do they effectively have 2 memberships and thereby 2 votes?
Q2. If the developers (and current directors) still have 30 units unsold, do they retain voting rights for each unit?


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## mathepac (25 Jul 2009)

I wouldn't think that ownership of multiple units confers multiple "memberships" in the management company on an individual or company.

To quote your own M&A's "every member shall have one vote", so you need to check the M&A's further to establish how "membership" is conferred.

 If I buy an apartment in my own name, mathepac becomes a member with a vote.

If I buy an apartment with my wife in both our names, do mr. & mrs. mathepac become members with a vote each (or do we have a half vote each, or as I am already a member, does mrs. mathepac get the vote)?

If my property development company buys an apartment, does the company secretary of mathepac inc. become a member with one vote?

If my property development company buys a second apartment, does the company secretary of mathepac inc. become a member again with an additional vote?


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## longsightm13 (25 Jul 2009)

Thanks Mathepac. What I find strange about our M&As (not withstanding the fact that it's a standard cut and paste job) is that there is no reference to how one becomes a member. The only other reference to voting rights states that:
_' no member other than a member duly registered, who shall have paid every subscription and other sum (if any) which shall be due and payable to the Company in respect of his membership, shall be entitled to vote.....'_
I guess I'll need to get hold of the members register and examine that before we attempt to oust the current directors (developers).


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## dubrov (25 Jul 2009)

It is almost certailnly one vote per unit. Otherwise you could have a ridiculous situation where onr person could own 98 out of a 100 units but could still e utvoted by the other 2 units.


You can put as many names as you like on the mortgage for a unit but it will still only receive one vote.


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## bigchicken (27 Jul 2009)

I'm interested in this also.

The Articles of Association for my mgmt company state the following:

"Subscribers to the memorandum of association and such other persons as the directors shall admit to membership shall be members of the company"

On the voting rights it says:

'Every member shall have 1 vote'

I take that to mean that even though the developer still owns multiple units, he only has 1 vote. Would it also mean however that (as he is a director of the mgmt company) he can decide to add anyone he wants as a member of the management company in the hope that they would vote with him on certain things..?


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## mathepac (27 Jul 2009)

dubrov said:


> It is almost certailnly one vote per unit. ...


Its certainly not based on OP's direct quote from M&As.


bigchicken said:


> ... Would it also mean however that (as he is a director of the mgmt company) he can decide to add anyone he wants as a member of the management company in the hope that they would vote with him on certain things..?


Presumably if the other director(s) agreed this could be the case, based on the wording.


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## dubrov (27 Jul 2009)

mathepac said:


> Its certainly not based on OP's direct quote from M&As.
> Presumably if the other director(s) agreed this could be the case, based on the wording.


 
How so? Member does not need to refer to an individual person.

The wording suggests to me that anyone who pays a management fee is entitled to one vote. As far as I am aware builders are not obliged to pay fees for unoccupied/unsold units. I'd check this out though.


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## JoeB (27 Jul 2009)

Well that was what I was going to say.. longsightm13's second quote says that only paid up members have a vote.. if the developer wants multiple votes he can pay multiple subscriptions..


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## Chancer (20 Aug 2009)

A member of a company has to be a legal person. That can be a human being or corporate body (company). If a member has one vote, then that means the only way a developer can acquire more memberships is by vesting each apartment/unit in a different company or person. Ownership of multiple units doesn't turn you into multiple people. A married couple duly enrolled on the members' register have two votes. The question is what gives someone the right to be enrolled on the members' register? I can't remember what the default is, but I think it gives the directors a right to refuse to admit new members.


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