Question: Is a proxy valid at a strata corporation’s General Meeting if the proxy-granting owner’s property was sold and recorded in the strata roll before the meeting date?
A property owner in a strata corporation gave a proxy to another person to vote on their behalf at an upcoming General Meeting. Before the meeting, the property was sold, and the sale was officially recorded in the strata roll. The proxy was used to vote on all resolutions at the General Meeting, including the election of committee members. Is the proxy valid, despite the property sale occurring before the meeting?
Answer: The proxy is invalid.
Part 4, Division 1(23)(1) of Schedule 1 of the Strata Schemes Management Act NSW 2015 specifies persons who are entitled to vote at a general meeting:
Part 4 – Voting rights and voting procedures, Division 1 – General rights to vote, 23 Persons entitled to vote at general meetings
- Persons who have right to vote: Each owner, and each person entitled to a priority vote, has voting rights that may be exercised at a general meeting of the owners corporation, but only if the owner or person is shown on the strata roll and, in the case of a corporation, the company nominee is shown on the strata roll.
Part 4, Division 1(23)(3) of Schedule 1 specifies how voting rights can be exercised by those eligible to vote as defined above i.e. “In person or proxy”.
If the lot owner referred to in your question is not shown on the strata roll at the time of the general meeting, they have no voting rights, which includes voting by proxy.
The proxy is therefore invalid, including votes associated with the invalid proxy note counted towards any resolution or election of strata committee members.
I trust this makes sense.
Rod Smith The Strata Collective E: rsmith@thestratacollective.com.au P: 02 9879 3547