Body Corporate Proxy Voting Rules: What You Need to Know
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A proxy vote allows a lot owner to appoint another person to attend a body corporate general meeting and vote on their behalf. This means owners who can’t attend in person can still have their vote counted, and it helps the body corporate reach a quorum and make decisions without delay.
This article explains how proxy voting works, the rules that apply under the BCCM Act and its regulation modules, and what to check before you appoint or accept a proxy.
What is a proxy vote?
A proxy vote is a vote cast at a body corporate general meeting by someone appointed to represent a lot owner, in their absence. The person appointed is called a “proxy”. This can be another lot owner, a family member, or a friend. A body corporate manager, or an associate of a body corporate manager, cannot be appointed as a proxy.
Unless the lot owner gives specific voting instructions, the proxy can use their own discretion on how to vote on each motion.
Where a lot is owned by a company, the company must first lodge a nominee form naming an individual to exercise its vote. That nominee can then appoint a proxy in the same way as any other eligible voter.
How does a proxy vote work?
1. Appointment of the proxy
The lot owner completes a proxy form, naming the appointed proxy, the duration of the appointment, and any specific instructions on how to vote.
2. Submission of the proxy
The lot owner must submit the completed proxy form to the body corporate secretary, often via the body corporate manager, no later than the start of the meeting. The body corporate can bring this forward by up to 24 hours.
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:
How many proxies can one person hold in a body corporate?
Under the Standard Module and Accommodation Module, a person can hold only one body corporate proxy if there are fewer than 20 lots in the scheme. For schemes with 20 or more lots, a person cannot hold proxies for more than 5% of the total number of lots. These caps work differently under the Commercial Module, and under the Small Schemes Module the body corporate can instead restrict proxy use by special resolution.
What is the Validity Period of a Proxy?
A body corporate proxy lapses at the end of the body corporate’s financial year, unless an earlier date is stated on the form. A lot owner can also limit a proxy to a single, specific meeting.
Who cannot be a proxy?
A body corporate manager, or an associate of a body corporate manager, cannot be appointed as a proxy.
What are the Limitations of a Proxy?
- A motion to engage a body corporate manager or service contractor (including a caretaking or onsite manager)
- A motion decided by secret ballot
- The election of a committee member
Can a Proxy be Revoked?
A lot owner can cancel or change their body corporate proxy at any time before the meeting. Submitting a new proxy form automatically invalidates the previous one.
What are the Submisssion Deadlines for a Proxy?
Proxy forms must be received by the Secretary of the body corporate prior to the commencement of the meeting.
What are the Voting Instructions for a Proxy?
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 proxy voting matters
Proxy voting lets lot owners have a say in decisions even when they can’t attend in person. It’s particularly valuable in larger schemes, where reaching a quorum can otherwise be difficult, and it helps avoid delays to essential works, maintenance, or financial decisions. See why voting at body corporate meetings is important.
Tips for appointing a proxy
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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