Proxies in Strata: What You Need to Know

If you're a part of a strata community, you've likely heard about proxies, but understanding the ins and outs can be a bit murky. Let's shine a light on this essential aspect of strata meetings and decision-making.

Appointment of Proxies:

• Proxies must be submitted to the owners corporation's secretary at least 24 hours before the first meeting they're intended for (applicable to large schemes) or at or before the first meeting in relation to which it is to operate (for all other schemes).

Large Scheme

A large scheme is a strata scheme with more than 100 lots or units.

• A later proxy form will revoke any previous appointments.
  

• The proxy remains valid until the specified period ends or 12 months from signing, or the end of the second consecutive annual general meeting, whichever is greater.
  

• Contracts requiring lot purchasers to vote as directed by others or give proxies are unenforceable.
  

• Individuals can hold a maximum number of proxies, depending on the size of the strata scheme:

• For schemes with 20 lots or less, one proxy is permissible.
  

• For schemes with more than 20 lots, the number of proxies cannot exceed 5% of the total number of lots. For example, if the strata scheme has 50 lots, then any one person can only hold up to two proxies.
  

• If a person holds more proxies than allowed, they cannot use any additional proxies to vote.
  

Rights of Proxies to Vote:

• You have the option to grant your proxy authority to vote on your behalf for all matters, or you can specify how they should vote on particular motions.
  

• Proxies can vote on behalf of the appointer or demand a poll.

Poll

Unlike a show of hands, where each person's vote carries equal weight, a poll allows each owner to vote in proportion to their unit entitlements. This means that owners with larger units have more voting power than those with smaller units. Polls are typically used for significant decisions or contentious matters where it's important to accurately reflect the interests of all owners based on their respective unit entitlements.

• They can also vote in their own right if entitled to do so.
  

• Proxies can vote separately for each appointer if appointed by multiple individuals.
  

• However, proxies cannot vote if the appointer is present and votes on the matter, or if it benefits the proxy materially, like in the case of strata managers.
  

Understanding proxies is crucial for effective participation in strata decision-making. If you're unsure about the proxy process or your rights, ask the expert team at Compass Strata. Remember, clarity and transparency are essential for smooth strata operations and Compass Strata is always here to lend a hand when you require assistance.