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  • #38335
    AvatarTrevor
    Flatchatter

    Proxy form: “Period or number of meetings . . . proxy has effect” with last box ticked – “2 consecutive Annual General Meetings”.

    1. Does this duration include use of proxy for intervening Extraordinary Gen Mtgs until second AGM after date of proxy ?

    2. Does it mean two meetings from date of proxy whether meetings are Annual or Extraordinary ?

    3. What else does it mean ?

     

    #38344
    Sir HumphreySir Humphrey
    Strataguru

    That would not work in the ACT. Where I am the Act says “… A person entitled to vote at a general meeting of an owners corporation must not— (a)  appoint a proxy for more than 1 year after the day the appointment is made …” but other states may be different and often are.

    • This reply was modified 4 months, 4 weeks ago by .
    #38353
    Jimmy-TJimmy-T
    Keymaster

    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.

    • This reply was modified 4 months, 3 weeks ago by .
    #38357
    AvatarTrevor
    Flatchatter
    Chat-starter

    Thanks for comments. They made me refer to the NSW Act  itself. It reads:

    Schedule 1

    Clause 26 (4) Period for which proxy effective

    An instrument appointing a proxy has effect for the period commencing with the day on which it takes effect and ending with the later of the first anniversary of that day and the conclusion of the second annual general meeting held after that day, unless it is sooner revoked or a shorter period is provided by the instrument.

    This makes clear the Clause is about a PERIOD of time for the Proxy (not a number of meetings or what meetings).

    That PERIOD as it states, can End on the LATER of  (first anniversary). . . . . . THE CONCLUSION OF THE SECOND AGM HELD AFTER THAT DAY .  (that day being the day the proxy takes effect being the day stated on it).

    Do you agree ?

    • This reply was modified 4 months, 3 weeks ago by .
    #38359
    Jimmy-TJimmy-T
    Keymaster

    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.

     

     

    #38398
    AvatarTrevor
    Flatchatter
    Chat-starter

     

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

    The circumstances are that with the same Strata Manager for a decade, ticking the last box on the proxy form has been taken as making the proxy valid for all general meetings from the date of the proxy to the date of the second AGM.
    (As the Act says)

    A replacement Strata Manager has ruled that the proxy ticked in the last box is only useable for two general meetings whether AGM or EGM.
    But would consider an alternative that it is usable for two AGMs but not useable for EGMs between the AGMs.

    Agree with you, please ask FT to amend the form front and back, ASAP, to agree with the clause in the Act.

    If proxy giver is entitled to specify what they want within the second AGM limit, can the proxy giver add to the wording on the front of the Form to quote the words of the Act and initial it ?
    viz In accord with Sch 1 Sec 24 , this proxy is VALID for a period that expires on the second AGM after the date hereof.

    #38400
    Jimmy-TJimmy-T
    Keymaster

    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).

    • This reply was modified 4 months, 3 weeks ago by .
    #38415
    AvatarFlame Tree
    Flatchatter

    Important to know for Qld owners: Proxy votes can not be included when the Motion relates to a body corporate manager or a service contractor. There are some other restrictions too so keep that in mind. If you need to rustle up some votes relating to these issues the owner must be present in person to vote, or return any paperwork beforehand indicating your voting choice. Seems nuts, and found this out to our detriment just last weekend’s agm.

    #38417
    Sir HumphreySir Humphrey
    Strataguru

    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.

    #38424
    Jimmy-TJimmy-T
    Keymaster

    In NSW, strata managers can’t use proxies when voting on issues related to their contracts.  And people who service the building professionally, like rental agents, can’t be elected to the committee (unless they are owners).

    #38432
    Jimmy-TJimmy-T
    Keymaster

    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.

    • This reply was modified 4 months, 3 weeks ago by .
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