Period/Meetings of Proxy Validity

In NSW the official proxy form (which must be used) says appointment is for “the purposes of meetings of the owners corporation (including adjournments of meetings).”

That would be all general meetings, Annual or Extraordinary, but lower down there is the qualification where the proxy donor can state the number of meetings or the period that they want covered.

Finally, there is Fair Trading’s own restrictions, which operate regardless of any stated preferences: “The appointment cannot have effect for more than 12 months or 2 consecutive annual general meetings, whichever is the greater.”

You can download a copy of the official form HERE.

No. I disagree. But I would like to know what the situation is that you are trying to address, as it would make it easier to answer your question.

The clause you quote makes it clear that the proxy can be valid for either a number of meetings, a period of time or both.

That means, depending on how it is filled in by the proxy donor, the proxy can be valid for 12 months OR to the end of a second AGM (whichever comes later) OR the number of meetings AND/OR the period defined in the form by the person providing the proxy, within those parameters.

The form, issued by Fair Trading (did you read it?) says:

Period or number of meetings for which appointment of proxy has effect for *1 meeting/* [BLANK SPACE] meetings/*1 month/* [BLANK SPACE] months/*12 months or 2 consecutive annual general meetings
*Tick or tick and complete whichever applies. (Note: The appointment cannot have effect for more than 12 months or 2 consecutive annual general meetings, whichever is the greater.)

In short, the validity of the proxy is defined by the proxy donor, except where they don’t state limits on times  and dates, when it defaults to to the 12 months or two meetings limits.

As also stated on the form, the proxy also covers adjournments of the same meeting.

However, confusingly, a note on the back of the form reads:

This form is current from the day on which it is signed until the end of the period (if any) specified on the form or the first anniversary of that day or at the end of the second annual general meeting held after that day (whichever occurs first).

That seems to contradict the clause in the Act that says whichever comes later, i.e. it would cover a second AGM which occurred , say 15 months after the last one.

And that’s a real possibility. Given that we are now required to have AGMs withing every financial year (rather than on the anniversary of the last) there could be a gap of as much as 23 months between AGMs.

I plan to raise that apparent contradiction with Fair Trading.

Trevor wrote:

You seem to assume the front page of the Proxy Form in the Regulations can over-ride the Act.
Doubtful ?

No, but I think the options offered in the form can often reveal the intent of the law.  That said, I have contacted Fair Trading about the apparent discrepancy, and what they think the “two AGMs” rule means.  All will be revealed later today (I hope).

The ACT has a different approach to the Qld one. Here, “A person entitled to vote at a general meeting of an owners corporation must not … appoint a person as a proxy if the person is— (i)  the manager; or (ii)  a service contractor.” Anyone else can be appointed as a proxy, another owner, your lawyer, a non-owner friend, your neighbour, the chair of the meeting etc.

Just had a call from the Minister’s office, thanking me for my “good catch.”

The proxy form is wrong when it says:

This form is current from the day on which it is signed until the end of the period (if any) specified on the form or the first anniversary of that day or at the end of the second annual general meeting held after that day (whichever occurs first).

The words in brackets should read “whichever comes later”, or words to that effect.

Also, the proxies are not restricted to the two AGMs mentioned and are effective for all the meetings in between.

Done and dusted.