Proxies And How They Work – NSW


SSKB Community Managers looks at voting proxies in strata communities

You can still have a say, even if you can’t attend your owners corporation meetings. All lot owners can choose a proxy to represent them.

To alert the owners corporation that someone will be attending in your place, you will need to appoint a proxy by filling in a proxy form – http://sskb.com.au/information/forms/nsw/.

You can appoint anyone as your proxy, including a tenant. Your form should state the date on which the proxy is made.

You must nominate whether your proxy can vote on all matters on the agenda, or only on certain matters. If your proxy is to vote on certain matters only, you need to specify what those matters are.

Unlike in Queensland, where a proxy cannot vote on a motion to appoint (or extend the contract of a strata manager), proxies in New South Wales operate slightly differently.

If such a motion is on the agenda, you as the owner, have to state how your proxy must vote on this matter.

A proxy becomes valid the date it is signed and remains in force for 12 months from the date of signing or the end of the second AGM held after that date, whichever is the earlier.

If you are going on holiday, or will be away on business when a general meeting has been called, you can specify dates for that proxy.

In general, a proxy cannot be perpetual, although there is one exception to this.

Valid proxy voting appointments or powers of attorney in place before 1 August 2008 remain in effect. However, that appointment or power is invalid if obtained through a sale contract, which has been renewed or extended on or after 1 August 2008.

To make sure the use of proxies are fair, the Act specifies that one person cannot hold more than one proxy if there are less than 20 lots in the scheme. If the scheme has more than 20 lots, one person cannot hold proxies for more than 5% of the total number of lots.

In addition, proxies held by a building manager, strata managing agent or an on-site residential property manager to obtain a financial or material benefit of the proxy holder.

Voting matters that are deemed to confer a material benefit include:

  • extending a term of appointment
  • increasing remuneration
  • deciding not to pursue, or to delay, legal proceedings involving the proxy holder

In addition, a developer or a person connected with the developer cannot make use of a proxy voting appointment or power of attorney resulting from:

  • a condition in a contract for the sale of a strata lot, or
  • another related contract or arrangement.

For further information on voting, proxies and how they work, please contact your SSKB Community Manager or check out the New South Wales Government web site: http://www.fairtrading.nsw.gov.au/ftw/Tenants_and_home_owners/Strata_schemes/Meetings_in_a_strata_scheme/Meetings_of_the_owners_corporation.page#Proxies_-_voting_on_someone’s_behalf



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