What is Proxy Voting and What Should You Know About It?

Proxy voting

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When it comes to managing a body corporate, decision-making is often a collaborative effort involving all lot owners – but, not every lot owner can attend meetings in person. This is where proxy voting comes in. Proxy voting allows lot owners to appoint another person to vote on their behalf at body corporate meetings. This process ensures that important decisions can still be made even when owners are absent.

This article is a guide to help you understand how proxy voting works, its importance, and what you need to know to ensure your vote is counted.

What is proxy voting?

Proxy voting is the process of appointing another person – called a ‘proxy’, to represent and vote on behalf of a lot owner at a body corporate general meeting. The proxy can be another lot owner, a friend or a family member. A body corporate manager or an associate of the body corporate manager cannot act as a proxy.

The proxy’s role is to vote as instructed by the lot owner, or if no instructions are given, they may have discretion to vote as they see fit. Proxies can vote on motions for financial matters, by-law changes, and other key decisions affecting the body corporate.

How does a proxy vote work?

The process of proxy voting typically follows these steps:

1. Appointment of the proxy

The lot owner completes a proxy form, which includes the name of the appointed proxy, the duration of the appointment, and any specific instructions on how to vote.

2. Submission of the proxy

The form must be submitted to the Secretary of the body corporate, often through the body corporate manager prior to the commencement of the meeting.

3. Voting at the meeting

The proxy attends the meeting and votes on behalf of the lot owner. They may vote on all or specific motions, depending on the instructions provided on the proxy form.

Key rules and limitations on proxy voting

Proxy voting is subject to certain rules and restrictions under body corporate legislation. Here are some important guidelines to be aware of:

Maximum number of proxies

In Queensland, if there are fewer than 20 lots in the scheme, a person can only hold one proxy. For schemes with 20 or more lots a person can only hold a maximum of 5% of the number of lots in the scheme.

Validity Period

A proxy appointment may be valid for a specific meeting or for a period not exceeding 12 months. If no end date is specified, it usually applies only to the next general meeting.

Who can be a proxy?

A proxy is a person at a general meeting representing an eligible voter. A proxy vote can be given by anyone who has the right to vote at a general meeting, must be a named individual and cannot be transferred to a third person.

Proxy limitations

A body corporate manager or an associate of the body corporate manager cannot be appointed as a proxy. A proxy vote can also note be exercised on the following motions:

    • Motion to engage a body corporate manager or service contractor (caretaking or letting agent)
    • Secret ballot motions
    • Committee elections

Revoking a proxy

Lot owners can cancel or change their proxy at any time before the meeting. If a new proxy form is submitted, the old one becomes invalid.

Submission deadlines

Proxy forms must be received by the Secretary of the body corporate prior to the commencement of the meeting.

Voting instructions

Lot owners can provide specific instructions on how they want their proxy to vote on particular motions. If no specific instructions are given, the proxy may vote at their discretion.

Why is proxy voting important?

Proxy voting ensures that lot owners can still have their say in decisions, even if they cannot attend meetings in person. This is especially valuable in large body corporates where reaching a quorum for meetings can be difficult. It also helps prevent delays in decision-making, which could otherwise slow down essential works, maintenance, or financial planning.

For lot owners, appointing a proxy offers peace of mind, knowing that their vote will be counted. For bodies corporate, proxy voting helps achieve a quorum and keeps operations running smoothly. See why voting and body corporate meetings is important.

What should you be aware of as a lot owner?

If you’re a lot owner and want to appoint a proxy, here’s what you should know:

Choose your proxy carefully

Appoint someone you trust to vote in your best interest. If you provide voting instructions, make them clear to avoid misunderstandings.

Understand the rules for your scheme

Your body corporate manager or secretary can provide guidance on deadlines and requirements.

Submit your form on time

Ensure you submit your proxy form before the deadline to avoid disqualification.

Check the proxy limits

Be aware of how many proxies your chosen representative can hold, as exceeding this limit could invalidate your proxy appointment.

Communicate clearly with your proxy

If you have specific preferences on how to vote, be explicit in the instructions on the proxy form. Provide clear directions on key motions to ensure your voice is heard.

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