Question: At a recent EGM, 11 lot owners voted who were not even present at the meeting. Is there a rule or a law to prevent this or punish owners who behave in this way?
My Body Corporate held an EGM in December 2020 which was attended in person by 8 people representing 11 lots out of a total of 64. At the next EGM the minutes from that previous EGM were received, with a total of 22 votes either for or against and 8 abstentions. In other words at least 11 lot owners voted when they were not at the meeting.
Is there a rule or a law to prevent this or punish owners who behave in this way?
Answer: Proxy voting is a standard feature of corporate governance, regardless of whether it’s a body corporate or other corporate entity.
Proxy voting is a standard feature of corporate governance, regardless of whether it’s a body corporate or other corporate entity. So too is the use of voting papers or electronic voting. In other words, being physically present at a meeting is not a prerequisite for voting at it.
Body corporate legislation puts restrictions on the use of proxies in certain situations. So if you are suggesting those restrictions were not adhered to, or that the votes were not properly counted, then perhaps you have a valid concern and there are options for you to pursue that, provided that you have evidence to support. Otherwise, bodies corporate can resolve by special resolution to prohibit the use of proxies altogether. As an owner you are free to put such a motion to a general meeting if you wish. If your motion gets defeated, then perhaps that is an indication to you that others do not share your views on proxy usage or that it requires ‘punishment’, to use your words.
This post appears in Strata News #476.
Chris Irons
Strata Solve
E: chris@stratasolve.com.au
P: 0419 805 898
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