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Topic
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At a recent AGM to my surprise 4 different members of the staff of the management agency had proxies.
Typically at an AGM the Chair (the agent) might get 2 proxies only one of which they could use but this year it seems the agent farmed proxies.
One proxy form even had one staff member’s name crossed out and another replacing it as the original named proxy already had a proxy and the proxy limit is one in our SP. One proxy was for a person who does not even appear on the agents web site as a staff member.
I find it hard to believe the agent did not farm proxy to control the meeting.
Perhaps no surprise as there was a motion on the agenda to terminate the agent.Has this agency devised a way to beat the proxy limit by just distributing them among the staff.
Suggestions to stop this in the future please.
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Replies
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OK, for a start, I assume they didn’t vote on the motion to remove them as strata manager as this would have been in breach of Schedule 1, Part 4, Sections 25 (7) and 25 (8) of of the Act (see below).
Even if they didn’t, this is such a blatant attempt to subvert the intention of the Act, I would immediately
a) make a complaint to Fair Trading – you can do so online HERE.
b) apply to NCAT to have the meeting’s decisons revoked and a new meeting called under and
c) apply to NCAT to have the strata manager removed as soon as a replacement can be found.
And Item (c) would answer your question on how to prevent this from happening again. I’m sure the strata manager will have all sorts of dubious legal arguments about how this is OK – but regardless, it’s a rort, plain and simple, and you and the other owners don’t want anyone like that anywhere near the management of your building.
Schedule 1, Part 4, Section 25: Rights of proxies and limits on votes by proxies
(7) Limits on exercise of proxy by building manager, on-site residential property manager or strata managing agent
A vote by a proxy who is a building manager, an on-site residential property manager or a strata managing agent is invalid if it would obtain or assist in obtaining a pecuniary interest for, or confer or assist in conferring any other material benefit on, the proxy.
(8) For the purposes of subclause (7), material benefit includes, but is not limited to, the following—
(a) an extension of the term or an additional term of appointment of the proxy as building manager, on-site residential property manager or strata managing agent,
(b) an increase in the remuneration of the proxy,
(c) a decision of the owners corporation not to proceed with, to withdraw, to delay, to compromise or to settle litigation or other legal proceedings relating to the proxy,
(d) any other decision of the owners corporation that affects litigation or other legal proceedings relating to the proxy.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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