New proxy limit rules

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Forums Meetings New proxy limit rules

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  • #231738
    mc
    Member

    Dear Amanda

    I am writing in relation to the proposed new proxy limit rule in the Straata Schemes Management Amendment (Sustainability Infrastructure) Bill 2020 [Schedule 1 new clauses 26(8) & (9).]

    We have a large strata where the proxy limit is 7.  An individual owner owns 12 lots. Previously they have had to appoint two persons to act as proxy for these 12 lots.

    Does this new change now mean that a single person can be appointed as proxyholder to exercise all twelve of those votes?

    If the answer is yes, does this then mean that that proxyholder can still exercise another 6 proxy votes on top of those 12 to reach the limit of 7?  Or can they only exercise the 12?

    It is confusing because 26(7) refers to the proxyholder whereas (8) refers to the person appointing the proxy.

    Thanks.

     

     

     

    #231923
    Amanda Farmer
    Expert

    Hi mc,

    Thanks for raising this. I also mentioned it on last Friday’s Happy Hour.

    Yes,  in my view this amendment provides clarification that the owner of more than one lot can list all their lots on the one proxy form, so they are only appointing 1 proxy holder who then has numerous votes. This was always my interpretation of the legislation, as I discussed with members here. So the clarity is welcome.

    In your example:

    Yes, a single person can now be appointed as proxy holder (via one proxy form) to exercise 12 votes on behalf of an owner of 12 lots.

    Yes, that proxy holder can then hold another 6 proxies to reach the proxy limit of 7. How many votes those 6 extra proxies give the proxy holder will depend on how many lots are represented by each proxy.

    Amanda.

    #231954
    mc
    Member

    Dear Amanda

    Thanks for your reply.  Nice to see a sensible change.

    I appreciate the effort you make with your forum.  It is such a great resource.

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