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

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 cannot attend a meeting but would like your vote to count, you can select someone to cast your vote on your behalf via proxy voting at a strata meeting. The rules around this in Victoria were amended in 2021, allowing you to submit a voting form in order to cast your vote.

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

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

If a lot has multiple owners, all co-owners should sign the form 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 selecting your proxy.

The form appointing the proxy must state the following:

• 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 may be valid for 12 months from the submission date (depending on the term of appointment).

3. Proxy voting is not allowed in some instances

The rules around proxy voting at a strata meeting differ from state to state. It’s best to contact your strata manager to check if proxy voting is allowed in your circumstance.

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 on matters related to their appointment, payment or dismissal.

In Queensland, a body corporate manager cannot be appointed as a proxy.

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 or strata manager 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 proxy voting process 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 the following:

• A condition in a contract for the sale of a strata lot
• Another related contract or arrangement.

7. There is a limit to how many proxies one person can hold

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 regarding 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

• A person must not hold more than one proxy if there are 20 occupiable lots or less
• If there are more than 20 occupiable lots, a person must not hold proxies for more than 5% of the number of lot owners
• Limits do not apply in certain circumstances, for example, if a person holds a proxy for several lots which are all owned by the same person/s.