Many body corporate decisions must be made at a general meeting where owners can vote.
If your body corporate does have a CMS, learn about general meeting voting in that case.
Appointing nominees in higher-level bodies corporate
A member of a higher-level body corporate can appoint a nominee to represent them and vote on their behalf at higher-level body corporate general meetings.
If the member is a subsidiary body corporate, a nominee must be appointed.
Written notice of the appointment must be given to the secretary of the higher-level body corporate.
A nominee must represent the subsidiary body corporate:
- how the subsidiary body corporate directs them to
- in the best interests of the subsidiary body corporate.
Nominees for community or precinct body corporate meetings
Under the Mixed Use Development Act 1993 (MUD Act), a member who is a subsidiary body corporate must appoint a nominee at its first annual general meeting (AGM) and ensure there is always a nominee.
If a nominee has not been appointed, the chairperson of the subsidiary body corporate automatically fills this role.
A nominee appointed by the subsidiary body corporate must be a member of the subsidiary body corporate and either:
- a voting committee member of the subsidiary body corporate
- a body corporate manager who has delegated power to act for the subsidiary body corporate.
Nominees for principal or primary thoroughfare body corporate meetings
Under the Sanctuary Cove Resort Act 1985 (SCR Act) and Integrated Resort Development Act 1987 (IRD Act), a member who is a subsidiary body corporate must appoint a nominee at its AGM and can otherwise appoint one from time to time.
For principal body corporate meetings, a nominee appointed by a subsidiary body corporate must be a member of the subsidiary body corporate.
Who can vote
When voting at a general meeting each lot gets 1 vote on:
- each motion submitted at the meeting
- an election of the committee.
Owners
A person can vote for any lot if they are listed on the body corporate roll as the lot owner.
Voting power is exercised by the first mortgagee of a lot listed on the body corporate roll instead of the lot owner in a subsidiary body corporate where either:
- a unanimous resolution is required
- the first mortgagee is present personally or by proxy and they choose to exercise their voting power.
If the owner or first mortgagee is a corporation, the above would apply for their company nominee.
Co-owners and co-mortgagees
Co-owners (or the company nominee if a corporation) can vote at general meetings.
Co-mortgagees in subsidiary bodies corporate can also vote at general meetings.
Read more about the process for voting by co-owners and co-mortgagees.
Trustee of a lot
An owner who is the trustee of a lot (or the company nominee if that owner is a corporation) can vote at a general meeting. The beneficiaries of the trust are not entitled to vote.
Loss of voting rights
A person is not entitled to vote at a general meeting (except on a motion that needs a unanimous resolution or a resolution without dissent) if, before the meeting, they have not paid:
- all contributions due at least 30 days before the meeting in relation to the lot
- any other amount recoverable by the body corporate from the person (or the lot owner) when notice of the general meeting is given.
Exception under the MUD Act
A subsidiary body corporate of a higher-level body corporate under the MUD Act does not lose voting rights if they owe an overdue amount to the body corporate at the time of the meeting and they:
- are owed an overdue amount by 1 or more undeveloped lot members of the subsidiary body corporate which is at least 50% of the amount owed to the body corporate
and
- have at least 1 member that is not an undeveloped lot member or an associate of an undeveloped lot member.
If this exception applies to a subsidiary body corporate for a general meeting, they must:
- provide evidence to support the exception if requested by the body corporate
- ensure that an undeveloped lot member who owes them this overdue amount does not represent or vote on their behalf as their nominee at the meeting
- appoint a nominee for the meeting who is not an undeveloped lot member.
Notices requested by the body corporate
A body corporate can ask for certain information from a person, such as notice of a new address for service or notice of a lease granted for 6 months or more.
A person will not be able to vote at a general meeting if they do not comply with the request from the body corporate.
The type of information the body corporate can request may vary depending on whether it is a subsidiary body corporate or a higher-level body corporate under the SCR Act, IRD Act or MUD Act.
How you can vote
You can vote for motions or in committee elections:
- in person
- by proxy
- in writing, by giving the secretary a voting paper for motions or a ballot paper for committee elections.
Voting by co-owners and co-mortgagees
Co-owners can only vote:
- by a proxy who has been appointed in writing by them jointly, if notice of the appointment was given to the secretary before the start of the meeting
or
- by giving a voting paper or ballot paper to the secretary indicating their joint vote.
This voting process also applies to co-mortgagees in subsidiary bodies corporate.
Withdrawing a vote
A person can withdraw a written vote if they attend the meeting personally or by proxy and notify the chairperson or secretary before the start of business at the meeting.
The person, or their proxy, can then vote on that motion or election as normal.
When a person withdraws their vote, the voting paper or ballot paper must be disregarded for:
- determining if there is a quorum
- counting the votes on that motion or election.
Read more about general meeting quorums.
Voting by proxy
A proxy is a person who represents a person who can vote at a general meeting.
Voting by proxy at subsidiary body corporate meetings
A proxy must be appointed in writing—either by the person appointing them or their power of attorney. This document must be given to the secretary before a time stated in the general meeting notice (which must be a time before the meeting is held).
A proxy can be appointed for a particular meeting or all meetings.
A proxy does not need to be an owner.
Restriction on using proxy
A person who has a financial interest in a prescribed arrangement (e.g. the appointment of a body corporate manager) cannot vote as proxy for another person on a motion relating to the prescribed arrangement, unless they are the person’s co-owner or co-mortgagee.
A person is seen as having a financial interest in the prescribed arrangement or proposed prescribed arrangement if the person or their spouse:
- owns shares (beneficially or otherwise) in a company that will benefit directly from it
- is a member of a firm that will benefit directly from it
- is a director or employee of a company or of a firm that will benefit directly from it.
Voting by proxy at higher-level body corporate meetings
To appoint a proxy, a person entitled to vote or their selected proxy must give a properly completed proxy form to the body corporate secretary holding the general meeting. The proxy form must be given before the start of the meeting (unless an earlier time is set by the body corporate).
A proxy:
- must be appointed using the approved form
- can be given by anyone who has the right to vote at a general meeting
- must be a named individual
- cannot transfer their proxy to a third person
- ends at the end of the body corporate’s financial year (unless a shorter period is listed on the proxy form).
Restrictions on using proxy
A body corporate manager cannot be appointed as a proxy. A body corporate manager’s associate can only be appointed as a proxy if they are an owner in a subsidiary body corporate that is part of a principal or precinct body corporate.
A proxy cannot vote:
- on electing or appointing a member of the executive committee
- for a majority resolution
- at a general meeting if the person who gives the proxy is personally present (unless they consent at the meeting)
- on a motion
- to engage a person as a body corporate manager or a service contractor, or to authorise a person as a letting agent
- where the proxy giver has submitted a written or electronic vote on that motion
- decided by secret ballot.
At general meetings of principal or precinct bodies corporate, a person must not hold:
- more than 1 proxy if there are less than 20 lots that have voting entitlements (sometimes called lot entitlements) for the meeting
- proxies for more than 5% of the lots if there are 20 or more lots that have voting entitlements for the meeting.
