Question: Is it permissible for two individuals from one lot to hold strata committee positions, especially when one position is obtained through a nomination from their corporate entity and the other using an “open” proxy?
Our AGM resulted in the election of a husband and wife, who jointly own one lot, to two committee positions. One position was obtained through a nomination from their corporate entity, and the other through an ‘open’ proxy from an absent lot owner. Is this election process compliant with legislation? Both owners head up the leadership team. Specifically, can two individuals from the same lot hold committee positions, and is the use of an ‘open’ proxy in this manner considered appropriate, particularly when it grants unchecked voting power to the proxy holder?
Answer: It seems the process of these two people nominating to the strata committee can be done.
Voting for companies can be performed in two ways. Either by a duly completed proxy form completed by the company (not in the representative’s name) or by a company nominee form.
It seems the process of these two people nominating to the strata committee can be done, i.e. the company nominated one person and an absentee lot owner nominated another person who happens to be the husband/wife of the company nominee. The absentee lot owner should have nominated this person in writing prior to the meeting at the time of giving the proxy. I’m not sure if this was done. A proxy holder is not entitled to nominate themself to the strata committee unless they have a nomination from an owner, either in writing from an owner prior to the meeting or in person by an owner at the meeting.
Regarding your comment “head up the leadership team”. I assume that these two people took office bearers positions? I agree with you that this concentration of power to fill two of the three office bearer positions does present a risk if they have sinister motives.
If you want to correct this, you can simply place motions at the next strata committee meeting to re-elect office bearers. The legislation doesn’t state they are required to resign or vacate the office bearers positions so this can be done by a majority vote of the strata committee.
This post appears in the April 2025 edition of The NSW Strata Magazine.
Rod Smith
The Strata Collective
E: rsmith@thestratacollective.com.au
P: 02 9879 3547
Leave a Reply