Disputes & Legal
In this article
- The valid grounds for challenging an OC decision
- The difference between a procedurally defective decision and one you simply disagree with
- The process for raising a challenge — committee, then DSCV, then VCAT
- What VCAT can do with a challenged decision
- How quickly you must act — and why delay weakens your case
Not all disagreements are challengeable
The democratic process means the majority decides. You can only formally challenge a decision where there are specific legal grounds — not simply because you voted against it and lost.
Not every owners corporation decision is one you will agree with. In most cases, the democratic process — voting at meetings — determines outcomes. However, there are circumstances where a decision can be formally challenged because it was made improperly, unreasonably, or oppressively.
Valid Grounds for Challenge
- Procedural defects: Proper notice was not given, quorum was not present, or the wrong type of resolution was used
- Unreasonableness: The decision is one that no reasonable owners corporation would make
- Oppressive conduct: The decision is oppressive or unfairly prejudicial to one or more lot owners
- Ultra vires: A decision outside the powers of the owners corporation under the Act
- Breach of the Act: The decision contravenes a specific provision of the Owners Corporations Act 2006 or the regulations
Simply disagreeing is not a ground for challenge
The fact that you voted against a decision and it was passed by majority vote is not a valid ground for challenge. The challenge process exists for genuine legal defects — not to relitigate democratic outcomes.
The Process for Challenging a Decision
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Raise concerns with the committee — Write to the committee explaining why you believe the decision is improper or unreasonable.
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Request reconsideration — Ask the committee to reconsider or rescind the resolution at the next general meeting.
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DSCV mediation — If the committee does not reconsider, free mediation through the DSCV may help resolve the disagreement.
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Apply to VCAT — As a final step, apply to VCAT for a review of the decision. Act promptly — unreasonable delay weakens your position.
⚖️ What VCAT can do with a challenged decision
VCAT can declare a resolution invalid if made improperly, vary or revoke an unreasonable or oppressive rule or decision, order the OC to reconsider the matter in accordance with proper procedures, and make any other order it considers fair.
Frequently Asked Questions
💰 Can I challenge a budget approved at the AGM?
It is difficult to challenge a budget approved by proper process and majority vote. However, if it was approved without proper notice, without a quorum, or includes clearly unreasonable items, a challenge may be possible.
⏱️ How quickly must I act?
There is no fixed time limit for VCAT applications regarding OC decisions, but acting promptly is critical. Delay can affect VCAT’s willingness to intervene, particularly if the decision has already been implemented.
💸 Will I have to pay costs if my challenge fails?
VCAT generally makes each party bear their own costs. However, costs may be ordered against a party who brings a frivolous or vexatious claim.
📋 Key takeaways
- Not every decision you disagree with can be challenged — there must be valid grounds.
- Valid grounds include procedural defects, unreasonableness, oppressive conduct, and acting outside the OC’s powers.
- Losing a majority vote alone is not a valid ground for challenge — that is democracy.
- Act promptly — delay can affect VCAT’s willingness to intervene, especially after a decision has been implemented.
- VCAT can declare a resolution invalid, vary or revoke unreasonable rules, or order the OC to reconsider.