ACT: Q&A Unit Entitlements, Proxy Votes and the Quorum

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These questions from ACT lot owners about proxy votes, meeting quorum and entitlements during owners corporation meetings have been answered by Jan Browne, Bridge Strata.

Question: In the ACT, in what instances do unit entitlements equate to votes at the AGM and other owners corporation meetings?

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Answer: A proxy counts, however, an absentee vote does not.

Voting is normally 1 vote per unit (noting unit is to be financial unless for a unanimous or unopposed resolution).

This is unless a Poll is declared. But the poll must be declared prior to the motion/motions being put.

The relevant Legislation Unit Titles (Management) Act 2011 – Schedule 3 General meetings reads:

Sec. 3.22 1 vote – 1 unit.

• A single vote is exercisable for each unit at a general meeting.

3.28 Value of votes

1. Every vote at a general meeting is of equal value, unless a poll is taken.
2. On a poll, the value of each vote (the voting value) is the value that is proportional to the unit entitlement of the unit for which it is exercised.

3.29 Polls

1. A poll may be demanded on an ordinary or special resolution at a general meeting by anyone present and entitled to vote at the meeting.
2. A demand for a poll may be withdrawn.
3. A poll may be taken in any way the chairperson considers appropriate.
4. The result of a poll—
   
   1. must be declared at the meeting by the chairperson as soon as it is worked out; and
   2. decides whether or not the resolution for which the poll was demanded has been carried.

This post appears in Strata News #341.

Question: In the ACT, does the appointment of a proxy count towards a quorum at a meeting? I’ve found conflicting views between the Act and what I’ve been told.

I have received a Proxy Form for our upcoming AGM in mid-October. The form states:

Section 1: Appointment of a Proxy (This will count toward a quorum at the meeting).

I note that Section 3.9 (1) of the Act states members of the owners corporation must be present to be included in a quorum.

Also, Section 3.31 (1) (4) states “A person who casts an absentee vote under this section is taken to be present (except for the purposes of making up a quorum).”

Our Strata Manager has provided the following explaination:

“The Office of Regulatory Services have ruled that proxy forms are to be counted as being present at a meeting.”

Your assistance in clarifying this issue would be appreciated.

Answer: A proxy counts, however, an absentee vote does not.

The advice from the strata manager is correct in that a proxy counts towards a quorum. However, an Absentee vote does not count towards a quorum.

Below is an extract from the publication as developed by Access Canberra. There has also being a ruling in ACAT along the below lines.

Unit titles management in the ACT:

Proxy and Absentee Voting

Proxy voting and absentee voting are used when a person is not able to attend a meeting. A proxy vote counts towards a meeting quorum and for decisions taken at the meeting.

An absentee vote counts towards a decision taken at the meeting but does not count towards making up a quorum. People may appoint a proxy to vote on their behalf and direct how the proxy is to use their vote.

A person may cast an absentee vote by using an absentee voting and giving it to the owners corporation before the meeting.

This post appears in Strata News #290.

Have a question about proxy votes, entitlements or quorums? Maybe you’ve got something to add to the article? Leave a comment below.

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Read Next:

• ACT: Q&A Is there a Code of Behaviour for Difficult Lot Owners?
• ACT: Q&A Can a Special Resolution be Challenged?

Jan Browne
Bridge Strata
P: 02 6132 4450
E: [email protected]

This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.

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