NSW Property Law - How Many Votes Can a Unit Owner Have?

[Rob Legat - SBPL]

The maximum number of proxies that can be held is limited by section 26(5) of Schedule 1 of the Act:

(7) Limit on number of proxies that may be held The total number of proxies that may be held by a person (other than proxies held by the person as the co-owner of a lot) voting on a resolution are as follows:
(a) if the strata scheme has 20 lots or less, one,
(b) if the strata scheme has more than 20 lots, a number that is equal to not more than 5% of the total number of lots.

So, in a 600 lot scheme (I know you said more...) the maximum number of proxies any one person can hold is 30.

Apparently this came into effect on 30 November, 2016 from some commentary I found. Prior to that 'proxy farming' was an issue.

 

[Icing]

Strata manager doesn't give out contacts of other lot owners to anyone. On average, only 50~100 lot owners turn up at a general meeting. With tricks like transferring proxies collected to other people, the Owners Corporation / OC as a whole practically has no say in any general meetings. I'd be much appreciated if anyone got any suggestions on what individuals can do to protect the OC.

 

[Rob Legat - SBPL]

I suggest you read through this page: Resolving disputes and mediation

 

[Icing]

I suggest you read through this page: Resolving disputes and mediation

Thanks Rob. With the mortgage and increased in levies, the amount of money involved is at the scale of million. It's not likely that mediation can help. As for litigation, there is a disparity of resources in terms of time and money.

With the effective control of the whole EC, these few people have been using the OC's money to obtain expensive legal advice for their personal interest instead of the OC's, not to mention giving themselves annual remuneration for their "hard work".

I need help.

 

[Icing]

By the w

I don't practice in NSW, but yes - I'm pretty sure.

Appointment of proxies must be done in the form prescribed by the regulations (per s26, Schedule 1 of the Strata Schemes Management Act 2015). The prescribed form requires signature by the owner and a nomination of the person appointed as proxy. It does allow for an alternate proxy if the first choice already holds the maximum number of proxies - this isn't a transfer, it's an alternate appointment.

The proxy could not appoint someone else, as the appointment of any proxy must be on the prescribed form and signed by the owner of the lot to which the vote attaches. Therefore, the proxy could not sign a valid appointment form as they are not the relevant owner.

Thanks Rob. I wasn't sure, because the OC always pays the same lawyer to attend our general meetings. As a lawyer for the OC, he knows very well how proxies have been transferred since 2016. Even when questioned, he would always confirms with everyone that the proxies have been checked and everything is legitimate. I wonder why he has never adopted this view the way you and Tim do.

 

[Rob Legat - SBPL]

Mediation is often the important first step to taking any further action, even if it is just to 'tick the box'. In a lot of cases, it will be the first question you're asked at a higher level and an indication that you haven't attempted it might get you shut out until you do. You want that person to be receptive to what you have to say.

Alternatively take your complaint to the Commissioner of Fair Trading, who oversees offences under the Strata Management Act.

 

[Icing]

Mediation is often the important first step to taking any further action, even if it is just to 'tick the box'. In a lot of cases, it will be the first question you're asked at a higher level and an indication that you haven't attempted it might get you shut out until you do. You want that person to be receptive to what you have to say.

Alternatively take your complaint to the Commissioner of Fair Trading, who oversees offences under the Strata Management Act.

Thanks Rob. It's not that simple to get help from the Fair Trading. I heard that a few other owners have already tried. It's not a few loosely organised individuals that I'm facing. It's a well organised organisation, and potentially a network I'm facing.

Just FYI, I call them an organisation because they are operating as a business. They take multiple roles - they act as a building manager, a lot owner, and a real estate agent, and effectively (with the help from few other lot owners) the decision maker for the whole building. As a large number of proxies are in the hands of the building manager or a lot owner, they are effectively controlling the strata manager, the lawyer, and the OC.

This organisation has been carrying out similar operations in different major cities across the country. It's not clear why a Fair Trading from one state took them to the tribunal and won, but others doesn't take any legal action. Although that case didn't involve proxies, I don't know how deep the water I'll be treading.

By way of background, the local council used some vague wordings in one of the important legal documents for the building, which subsequently adopted in the by-law. The key phrase is ambiguous. This allows the organisation to adopt a different interpretation based on what is convenient for them at the time. It is not clear whether the usage of such vague wording was used accidentally or deliberately. This important document and it's subsequent by-law indirectly helped this organisation to collect a large number of proxies. For decades, the OC can't ask the local council for any clarification or amendment, as it can't make any real decisions for itself.

I have also heard that there were death treads against a lot owner in the past. I hope it's only a rumour. I'm not sure what the legal system can do in a case like this.

 

[Rob Legat - SBPL]

I'd suggest that a group of the like minded owners is going to need to band together and go see an expert in strata management law in NSW. If OFT is unwilling to act (and in my experience, I'm not surprised), it will take a private action to seek a declaration (or similar) on the decisions of the committee.

 

[Icing]

I'd suggest that a group of the like minded owners is going to need to band together and go see an expert in strata management law in NSW. If OFT is unwilling to act (and in my experience, I'm not surprised), it will take a private action to seek a declaration (or similar) on the decisions of the committee.

Thank you so much for your help. Much appreciated.