Proxy Voting - NSW - SSKB - Strata Managers | Community Experts

Proxy Voting – NSW

SSKB strata managers examines changes to proxy voting in NSW Owners Corporations

New strata laws apply in New South Wales from 30 November. SSKB has reviewed these new laws and in response to enquiries from our clients, we address five of the major changes that will affect your community. If you have any further questions regarding these changes, please contact your SSKB strata manager.

Getting the maximum number of lot owners to a meeting is a challenge faced by every Owners Corporation. This is why the law allows for proxies – a lot owner having permission to vote on another owner’s behalf.

Currently, there is no limit to the number of proxies one owner may hold.

While holding multiple proxies has been a convenient way to get the numbers required to pass resolutions, it does come with the risk of ‘proxy farming’ in which a committee member may use this provision to unfairly steer the direction of the Owners Corporation.

This situation changes from November 30, when proxy votes able to be held by one person will be limited to:

  • One proxy vote only for schemes with less than 20 lots, or
  • 5% for schemes with more than 20 lots.

From that date if a General Meeting doesn’t achieve a quorum after 30 minutes, the Chairperson can either adjourn the meeting for seven days or declare a quorum be formed by those present at the meeting and proceed accordingly.

To help strata communities to maximise involvement of lot owners, the new legislation allows Owners Corporations to pass a resolution to approve alternative voting methods such as electronic voting.

If you would like to know more about this change and others which are coming from November 30, the Strata Schemes Management Regulation 2016 is available here.

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