Owners Corporation - the importance of proxies

If you are a member of an owners’ corporation, it’s important to check that the parties who speak and vote at an annual general meeting, special general meeting or committee meeting are legally entitled to do so.  A lot owner must be “financial” (i.e. their owners corporation fees must have been paid in full) to vote at an owners corporation meeting. This is required by the law governing owners corporations in Victoria, being the Owners Corporation Act 2006 (Vic).

If a lot owner cannot attend a meeting (in person or by telephone) then they can appoint a proxy or representative to attend and vote on their behalf.  A proxy form must be completed by the lot owner naming the person appointed as proxy, and state what matters the proxy can speak on and how they must vote.  Often a lot owner will appoint the owners corporation manager or another lot owner to vote on their behalf.

However, a proxy form does not operate indefinitely.  It lasts for 12 months only and must be renewed annually to be valid.  A proxy granted to one person cannot be transferred to another person as a substitute proxy.

A prudent owners corporation manager or secretary will always check the proxy forms held by an owners corporation are current before allowing a proxy to vote.  This is important when a vote is required to pass a resolution (i.e. make a decision) at an owners corporation meeting.

Speak to us today is you need to know more about how appointing a proxy works.