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  • #59812

    Hi Everyone

    I am in NSW. I want to ask about company nominees and the rules surrounding them. Our building is controlled by investors who never turn up to meetings. They own big entitlements and give their company nominees over to the committee. The committee then hold multiple proxies,  because we have more than 2o lots, and then they also hold huge company nominee votes.

    So they are unbeatable. So much so, most people do not bother to come to meetings. There is no point, the vote is decided before the meeting. What ever the committee wants they get.

    My questions are: 1. Can the committee move the company nominee votes around  from  committee member to committee member?   Or, is it true that the company nominee must be stated in the strata roll and that must not change?

    2. The new rule says company nominees are now counted as one vote? I am not sure I understand this. They way I read it is if they own a large entitlement,  say 10 lots, then that vote would be measured in entitlements and we would have to count entitlements for every vote we have? Can someone explain this new rule to me please.

    Thank you in advance for your thoughts and any ideas you may have to break the strangle hold on this building.

    Thanks again Whoopi


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  • #59825

    Are you getting confused.

    If a company owns a lot, the company must nominate a nominee to represent them. The nominee is required to be listed on the strata roll.
    The notice of a company nominee usually requires a company seal, so it’s not possible for the committee to move the nominees around.

    The nominee does not need to be a company director. Companies who own multiple properties can nominate one nominee for each property. Thst nominee then has as many votes as there is properties.

    The other situation is proxy votes. A proxy is appointed to represent the owner for a defined period. Under the new legislation, an owner with multiple properties can appoint one person as a proxy for all the properties. The proxy holder then has as many votes as properties he represents. (The old rules limited then to no more than 5% proxies).

    The owner of the property must notify the OC in writing prior to the meeting nominating by name the proxy holder. So it’s not legal for the committee to just pass blank proxies around.

    I would be scrutinising either the company nomination (it requires a company seal but there are exceptions to this)

    Scrutinise the proxies as well thst they are correctly signed – either a signature of the owner/company nominee or an email to that effect.

    It bears to remember that unLess a company nominee has been nominated (a person) on the strata roll ,it’s only the company secretary who can nominate proxies,and then only after a company meeting authorised such.

    Strata Answers
    (from NSW)

    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
    S T R A T A   A N S W E R S  PTY  LTD      practical solutions for strata living
    abn 11 600 590 083



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