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we have heard on the grapevine that one more lot in our 14 Lot Strata Scheme has been sold and we are all crossing our fingers that this is the case. The sale of one more lot means that our scheme will transition from being in the Initial Stage to having its first AGM and electing a Strata Committee. Currently 27% of the Lot entitlements have sold ( 4 out of 14 apartments) excluding the developer/ original owners own apartment.
We have also been advised by a friend of the new purchaser that the original owner has inserted a clause in the contract of sale which requires that owner to give his proxy vote to the original owner. Is this legal? If not what can we , as owners of one of the apartments , do to prevent this?
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“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.”
and/or
“A proxy has no effect if the person who gave the proxy attends the meeting and votes in person.”
From:
I can’t believe this guy thinks he can get away with this. Years ago I ran a campaign in the SMH that got the law changed and stopped the Rose Group from demanding proxies from their purchasers. It was so bad the residents of a premium building were voted off their own committee and replaced with a Rose employee because of their strong objections to plans to convert their private marina into a commercial operation. The Rose employee then sent a letter of strong support on their behalf. Former planning minister Frank Sartor stepped in and changed the law.
Anyway, this is how the Act now reads;
27 Certain provisions unenforceable
A provision of a contract for the sale of a lot in a strata scheme, or of any ancillary or related contract or arrangement, is void and unenforceable to the extent that it:
(a) requires the purchaser of a lot, or any other person, to cast a vote at a meeting of the owners corporation at the direction of another person, or
(b) requires the purchaser to give a proxy at the direction of another person for the purpose of voting at a meeting of the owners corporation.Regarding your AGM, I strongly suggest that you get a strata lawyer or competent strata manager to attend otherwise your developer will just blithely ignore the law and you will spend the next few years fighting him at the tribunal and in court to rectify his illegal decisions.
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