The 2021 legislation frees up owners to provide a single proxy reflecting the combined voting power of their holdings, so as not to run up against the 5% rule that would otherwise force them to find multiple nominees.
Further legislation currently being drafted is based on the recommendations of Report on the Review of the Strata Schemes Management Act, that was tabled in Parliament late last year and seeks to pull company nominees (no matter how many properties they represent) into the 5% restriction regime
See Recommendation 51
Refine the provisions in relation to proxies to include powers of attorney and company nominees as types of proxies subject to the same restrictions on the maximum number of votes a single person can hold.
This recognises that Company Nominees were never subject to the 5% restriction and that there is an INTENTION that they should be. Whether the Company Nomination is in respect of just one lot or multiple lots it seems misconceived that Company Nominations should be considered part of the 5% proxy restriction regime – after all, companies are forced to delegate their voting to a natural person.
The thoughts of others appreciated.
John Hutchinson
m: 0418 797470 e: john.hutchinson@strataanswers.com.au
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