Proxy Votes in NSW

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  • 23/01/2019 at 7:59 am #12146
    steven strata
    Flatchatter

      Regarding Proxy votes in NSW.

      I have encountered that it is commonly suggested that for a strata scheme of 20 lots or less that a person may only hold one proxy vote at a meeting.

      On reading the NSW Strata Schemes Management act 2015 , I consider this is not what the act states.

      The act limitation on Proxy votes states it is a limitation on proxy votes on a resolution.

      I note the Strata  ACT states in part:

      (2) Form of proxy The prescribed form is to make provision for the giving of instructions on:

      (a) whether the person appointing the proxy intends the proxy to be able to vote on all matters and, if not, the matters on which the proxy will be able to vote, and

       

      So the situation may arise where a proxy may be provided from one owner for a limited number of motions , and another proxy may be for other motions/ resolutions.

       

      ALso the Act States  ( Bold and underline emphasis added )

      (7) Limit on number of proxies that may be held. The total number of proxies that may be held by a person (other than proxies held by the person as the co-owner of a lot) voting on a resolution are as follows:

      (a) if the strata scheme has 20 lots or less, one,

      (b) if the strata scheme has more than 20 lots, a number that is equal to not more than 5% of the total number of lots.

       

      So my understanding is that the Act states that the proxy limit relates to voting on each resolution … not the overall meeting.

      So a person attending a meeting could hold proxies from more than one owner,   but can only vote one of those proxies for each motion/ resolution.

      They could say vote one proxy for a motion ,…. then vote with a different proxy for another motion/ resolution.

      But only vote one proxy for each resolution.. In a strata scheme of 20 lots or less.

       

      Could any one comment as to if my reading of the Act is correct?

      Thank you Steven Strata

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    • 23/01/2019 at 9:02 am #31096
      Jimmy-T
      Keymaster

        What you are saying seems logical but you also have to address what it says on the official proxy form. which refers to proxies “held” rather than employed in a vote.

        In case there are contradictory impressions given by the Act and the form, you might pay particular attention to the final note on the form: 

        2. A proxy is not authorised to vote on a matter … if the right to vote on any such matter is limited by this form.

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        23/01/2019 at 2:04 pm #31106
        steven strata
        Flatchatter
        Chat-starter

          Thankyou Jimmy -T for your response and link to the Department of Fair Trading Proxy form.

          “Re 2.    A proxy is not authorised to vote on a matter…. If the right to vote on any such matter is limited by this form.”

          I think this is a reference to that the proxy giver may state that the proxy has been given in relation to only certain motions.  ( hence limiting right to vote on some motions)

           

           I note the form also states 1.  (c)   if appointed as a proxy for more than one person, may vote separately as a proxy in each case.         So this seems to support my position

           

          As for the “official Form”  I note this only someones interpretation of the ACT,  I think not a copy of a form prescribed by the act.

          So, I will persist with my reading of the act.

          Another question which the act does not seem to address is,  How many proxies can the strata manager cast? … I assume it’s the same as for any other person .. ie only one for schemes with 20 or less lots.

           

          Again Thank you for your Time Regards Steven Strata

          23/01/2019 at 11:25 pm #31110
          Jimmy-T
          Keymaster

            @steven strata said:
            As for the “official Form”  I note this only someones interpretation of the ACT,  I think not a copy of a form prescribed by the act.

            Not so.

            This from schedule 1 of the Act:

            (1) Duly appointed proxy

            A person is a duly appointed proxy for the purposes of this Part if the person is appointed as a proxy by an instrument in the form prescribed by the regulations and the form is signed by the person appointing the proxy or executed in any other manner permitted by the regulations.

            And from the Regulations …

            13   Proxy votes—owners corporation

            For the purposes of clause 26 (1) of Schedule 1 to the Act, an instrument appointing a proxy is to be in or to the effect of Form 1 in Schedule 1.

            Another question which the act does not seem to address is,  How many proxies can the strata manager cast? … I assume it’s the same as for any other person .. ie only one for schemes with 20 or less lots.

            The Act doesn’t address this specifically do you can assume it’s the same as for everyone else (except strata managers may not use proxies to vote on issues in which they have a pecuniary interest).

            The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
            24/01/2019 at 5:07 pm #31117
            steven strata
            Flatchatter
            Chat-starter

              Thanks Jimmy

              So the proxy Form and its notes are offical and I now note they are as specified in the Strata Schemes Regulations 2016.

              So I see the notes on the form ( and in the Regulations) say  (my underlines added )

              4   

              If a person holds more than the total number of proxies permissible, the person cannot vote using any additional proxies. The total number of proxies that may be held by a person (other than proxies held by the person as the co-owner of a lot) voting on a resolution are as follows:

              (a)  if the strata scheme has 20 lots or less, one,

              (b)  if the strata scheme has more than 20 lots, a number that is equal to not more than 5% of the total number of lots.

               

              Hence I take this as reinforcing for me my reading that the Act and the Regulations state that the limit on proxies relates to voting on each resolution … not the overall meeting.

              Probably little difference in most instances, put could be relevant where the proxies held relate to only voting on some resolutions of the meeting.

              I think nothing to lose any sleep about, but may be relevant in some circumstances.

              Regards

              Steven Strata Smile

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