How Overhang Seats Arise
Under MMP, a party is entitled to a number of seats based on its share of the total vote. If a party is entitled to ten seats, but wins only seven constituencies, it will be awarded three list seats, bringing it up to its required number. This only works, however, if the party's seat entitlement is more than (or equal to) the number of constituencies it won. If, for example, a party is entitled to five seats, but wins six constituencies, the sixth constituency seat is called an overhang seat.
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