Voting rights in a housing co-op: one member, one vote or by share?

The short answer

In a housing co-operative the starting point is usually one member, one vote, however many shares a member holds. In an owners’ association the rule depends on national law and on what the owners have agreed: some count heads, others weight each vote by unit, share or floor area. Whichever applies, it comes from the statute and your articles or by-laws, and it should be written into the voter register before the meeting opens.

What does “one member, one vote” actually mean?

It means every member counts once, regardless of capital. The International Co-operative Alliance’s Statement on the Cooperative Identity, adopted in its revised form in 1995, lists “democratic member control” as its second principle: in primary co-operatives, members have equal voting rights, one member, one vote.

National and European law build on the same idea:

• In Germany, § 43(3) of the Genossenschaftsgesetzstates that each member has one vote. The articles may grant multiple votes to members who particularly promote the co-operative’s business, as a rule no more than three. On decisions that the law says need three quarters of the votes cast, every member has one vote. (See multiple voting rights.)
• For a European Cooperative Society, Article 59 of Regulation (EC) No 1435/2003states that each member has one vote, regardless of the number of shares held. Where national law allows, the statutes may give extra votes for participation in the co-operative’s activity, capped at five votes per member or 30% of total voting rights, whichever is lower.

So buying a second co-op share does not, as a rule, buy a second vote. Capital and voting rights are tracked separately (see share classes and voting rights).

When are votes weighted by share, unit or area?

Weighting is more common where people own property directly, such as an owners’ association in a condominium building. There, an owner with a large flat pays a larger share of the costs, and the question is whether they should also carry a larger share of the vote.

The answer differs by country. German law is a useful illustration of a head-count default: under § 25(2) of the Wohnungseigentumsgesetz, each unit owner has one vote. Other legal systems, and many owners’ agreements, weight votes by unit, by co-ownership share or by floor area instead. Before a meeting, check which of these your own statute and declaration actually use.

Who decides which method applies?

Two layers decide, in this order:

1. The statute. Law sets the default and the limits. The German co-operative act allows multiple votes only within its caps; the SCE Regulation allows exceptions only where national law permits them.
2. Your articles, by-laws or declaration. Within what the statute allows, these documents set the weighting, the quorum and the majorities. For an SCE, Article 61 leaves quorum and majority requirements to the statutes, apart from its own rules on amendments.

A board cannot choose a weighting on the day. If the articles are silent, the statutory default applies.

What if one member owns several units?

Under a head-count rule, owning more units does not add votes: one person is one member. Under a per-unit or per-share rule, each unit or share adds weight. This is a common source of surprise at a meeting, so state it in the invitation and show each voter’s weight in the register (see how voting weight is calculated).

How do joint owners vote?

Joint owners usually hold one vote, or one weight, between them. In Germany, § 25(2) WEG says that where a unit belongs to several people jointly, they can only exercise the vote uniformly. In practice that means agreeing in advance who casts it, and registering that person.

How do proxies fit in?

A proxy votes on behalf of a member, and carries that member’s weight, not their own. The statute may limit proxies. Under § 43(5) GenG, a proxy needs text form, the articles may require written form, and one proxy may represent no more than two members. For owners’ associations, § 25(3) WEG requires proxies to be in text form. Check your own articles for deadlines and who may act as proxy.

How does weighting change quorum and majorities?

Quorum and majority are both measured in the same unit as the vote. If your articles say “half of the votes must be present”, a weighted rule counts present weight, not present people. One owner with a large share can then make a quorum alone, or block a two-thirds majority alone. A head-count rule does the opposite: many small owners can outvote one large one. (More on thresholds in how many is a quorum?)

Note also what the majority is measured against. Under § 25(1) WEGa resolution passes by a majority of the votes cast, and the SCE Regulation’s Article 61 likewise refers to votes validly cast. Abstentions and absent members then do not count against a proposal. Your articles may set a different base (see how votes are counted).

A worked example

Example, with hypothetical numbers: no real organisation.

A building has 10 units and 7 owners. Owner A holds 4 units, registered as 46 of 100 shares. Owners B to G hold one unit each, 9 shares apiece. A and B vote for a proposal; C to G vote against.

The same meeting, the same people, three different outcomes.

Now add a quorum of “half of the votes present”, and suppose only A and B attend. By head, 2 of 7 owners is under half: no quorum. By share, 55 of 100 is over half: quorum met. That is why the rule has to be settled from the articles before anyone votes.

Where Assembley fits

Assembley lets you give each member a number of votes in the register, for example one per share or the owner’s allocation number, and counts every item by that weight, including the votes a proxy casts for the owners they represent (for housing co-ops and owners’ associations). Weighted votes need the Advanced voting add-on; without it, each voter has one vote. It counts against the requirement you set on each item, and the chair declares the result. Assembley does not decide which weighting rule your statute or articles require, or whether a proposal is adopted.