WA: How are proxy votes counted on a show of hands at a strata meeting under the Strata Titles Act 1985?

Question: If a person holds a proxy and casts a vote on an issue, is their proxy vote automatically cast, or do they have to state they are also casting a proxy vote?

Answer: If a vote is taken on a show of hands, the person counting the votes should. ask the proxy holder whether they are also voting on the motion as the proxy holder for another lot.

This is an interesting question. However, if a vote is taken on a show of hands, the person counting the votes would obviously ask the proxy holder whether they are also voting on the motion as the proxy holder for another lot, in particular, if that would mean the proxy vote would be a deciding vote on a resolution.

As we do not know how large or small this scheme is, we recommend for large schemes that voting flags be issued for general meetings, which would then show how many votes an owner holds when it comes to voting. In a smaller scheme, if unsure, we suggest the owner is asked whether they are voting for their own lot as well as for the proxy owner.

Please also note Section 120 – Voting – of the Strata Titles Act 1985 as amended 2018:

120. Voting

1. The owner of each lot in a strata titles scheme is entitled to 1 vote on a proposed resolution of the strata company.


2. However, the owner of a lot is not entitled to cast the vote attached to the lot if –
   
   1. the resolution is not required to be a unanimous resolution or a resolution without dissent and is not a resolution for postponing the expiry day for a leasehold scheme or a termination resolution; and
   
   
   2. there is an outstanding amount recoverable under this Act owed to the strata company by the owner of the lot.


3. A proposed resolution can be put to the members of a strata company —
   
   1. at a general meeting; or
   
   
   2. outside of a general meeting.


4. A resolution can be proposed only by a member of the strata company who is entitled to vote on the resolution.


5. The vote attached to a lot can, and can only, be cast, if at the time it is cast, the person is entitled to cast the vote attached to the lot


6. The owner of a lot may cast the vote attached to the lot in person or by duly appointed proxy.


7. However, if a vote is taken at a general meeting at which both the owner of a lot and a proxy entitled to cast the vote attached to the lot are present and the owner is not a co-owner of the lot, the owner of the lot must cast the vote.


8. The voting system, whether it is electronic or by other means, must —
   
   1. enable votes to be cast in a manner designed to protect the integrity of the voting system; and
   
   
   2. comply with any requirements specified in the regulations.

This advice does not constitute legal advice and we recommend that the owner obtains their own legal advice to suit the circumstances.

This post appears in Strata News #660.

Marietta Metzger magixstrata E: marietta@magixstrata.com.au P: 08 6559 7498