7 things you need to know about proxy voting at a strata meeting

The rules using proxy voting at strata meetings header image

7 things you need to know about proxy voting at a strata meeting

If you are unable to attend a meeting but would like your vote to be presented, you can select someone to cast your vote on your behalf via a proxy

If you are unable to attend a meeting but would like your vote to be presented, you can select someone to cast your vote on your behalf via proxy voting at a strata meeting.

A proxy is a person who represents a voter at a general meeting. An owner can delegate their voting rights to another person who becomes their proxy, which is called proxy voting.

An owner can make any person their proxy, including their tenant. A proxy has no effect if the person who gave the proxy attends the meeting and votes in person. A proxy cannot be transferred to a third person. Valid proxies are part of the quorum that allows a meeting to proceed.

1. You may authorise a person to act as a proxy in writing, to do three things

When it comes to proxy voting at a strata meeting, you may authorise a person to act as a proxy in writing. They will be able to do the following on your behalf:

  • Attend, speak or vote on your behalf at an owners corporation meeting
  • Vote on your behalf on a ballot
  • Represent you on the committee.

 

2. You can appoint a proxy by completing a proxy form

As an owner, if you decide to exercise your vote by proxy voting at a strata meeting, you should submit a proxy form with the secretary as a formal document of authorisation. Proxies must be given to the secretary before or at the meeting.

If a lot has multiple owners, the form should be signed by all co-owners in order to authorise proxy voting at a strata meeting.

To ensure the proxy is valid and your views are represented, certain procedures must be met in completing the form and in the nomination of your proxy.

The form appointing the proxy must state:

  • The date on which the proxy was made
  • Whether the proxy can vote on all matters, or only certain matters and what those matters are

The owners corporation should retain the proxy form in its records, as they are valid for 12 months from the date of submission.

 

3. Proxy voting is not allowed in some instances

The rules around proxy voting at a strata meeting differ from state to state.

However, proxy voting is generally not allowed in the following instances:

  • In committee meetings
  • On a motion to elect committee members
  • To engage a person as a body corporate manager or a service contractor
  • To authorise a person as a letting agent.

 

4. In some states, a strata manager may be able to engage in proxy voting at a strata meeting

In New South Wales and Victoria, strata managers may be permitted to vote on behalf of an owner, but only if the proper authorisation and proxy form is submitted with the secretary. However, they are not allowed to vote in general meetings and on matters related to their appointment, payment or dismissal. In Queensland, a body corporate manager cannot be appointed as a proxy.

CommunityHub promo banner

 

5. When it comes to proxy voting at a strata meeting, special conditions apply for large strata properties in NSW

In New South Wales, a proxy must be in the hands of the secretary at least 24 hours before the meeting for large strata properties with more than 100 lots.

 

6. No material benefits can be gained through proxy votes

The process of proxy voting at a strata meeting cannot be used for financial or material benefit by a building manager, strata manager or an on-site residential property manager.

Material benefits include:

  • Extending their term of appointment
  • Increasing their remuneration
  • Deciding not to pursue or delay legal proceedings involving the proxy holder.

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
  • Another related contract or arrangement.

 

7. What are the proxy special conditions for large strata properties?

The quota or number of proxies one person can hold depends on the number of lots in your strata property and what your state laws permit when it comes to proxy voting at a strata meeting.

In New South Wales

  • One proxy vote only for strata property with 20 lots or less
  • In a strata property with more than 20 lots, a number that is equal to no more than 5 per cent of the total number of lots. For example, if your strata property has a total of 100 lots, it can have a maximum of five proxies.

 

In Queensland 

  • A person must not hold more than one proxy if there are less than 20 lots in the body corporate property
  • For properties registered under the Standard Module and with 20 or more lots, a person must not hold proxies for more than 5 per cent of the total number of lots
  • For properties registered under the Accommodation Module and with 20 or more lots, a person must not hold proxies for more than 10 per cent of the total number of lots.

 

In Victoria

  • Only one vote is allowed per lot.

Having set up the very first strata scheme in Australia back in 1948, we’ve come a long way in our knowledge and experience across a variety of property types. Whether you are new to strata management or an active committee member, we have developed an extensive library of resources to assist you. Click here to download our FREE Community Living guide on committee management. For a consultation to review your current by-laws with the Kemp Peterson team, click here. To find out more about the services we offer, click here for a free strata assessment.


Helpful resources and services
We care about what you have to say. Share your feedback here.