Currently, under the Sectional Titles Act No. 95 of 1986 (the Act), there is no proxy limitation. It is also important to point out that rule 67 prescribed under the Act has not been changed. So unless a scheme has changed this rule, any person can hold any number of proxy appointments.
What is a proxy?
A proxy is a person who has been appointed by an owner to attend, speak and vote on their behalf at a general meeting. Prescribed management rule 67 says that owners may cast a vote at a general meeting personally or by proxy and a proxy need not be an owner of that scheme. The proxy must be appointed in writing and a “proxy form” must be signed by the owner or by his or her authorised agent, who has also been appointed in writing. The signed proxy form must be handed to the chairperson before the meeting starts unless it is contained in a registered mortgage bond and the bond is produced at the meeting. A proxy form may include specific instructions on how the proxy should vote – if this is done, then the proxy is bound to follow these instructions.
Currently, one person could lobby other owners to authorise them to appoint him or her as their proxy, allowing the one person to vote for or against a motion in a manner that best suits their needs. When the two-proxy limitation comes into effect, this type of “concentration of voting power” in one owner will not be legal and owners will either have to attend meetings or appoint different proxies to have their votes exercised at meetings they cannot attend.
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2 Comments.
There seems to be serious questions on proxy substitution. The Act clearly does not specify substitutions. Substitutions would be overriding the provisions of the Act.
The power to substitute an appointment of proxy is not contained anywhere in the Act nor the Management Rules and is not in the spirit and intention of the Act. This very change to the Act was precisely promulgated to prevent abuse.
It undermines the provisions of the Act and, if not correct may invalidate the whole process.
Your comments would be highly appreciated.
Dear Rajan,
Thank you for your comment. This article is outdated, considering the new legislation came into effect in October 2016. We are more than happy to help, however we do not give free opinions / advice. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.
Kind regards,
Paddocks