Thinking Inside the Box

A Paddocks Sectional Title Lifestyle Blog

Proxies

paddocks_proxy

By Zerlinda van der Merwe

Sometimes the number of proxies received by the body corporate can mean the difference between whether the quorum requirements of a general meeting will be met, or whether the meeting will stand adjourned for lack of quorum.

A proxy is a person who has been appointed by a member to attend, speak and vote on their behalf at a general meeting. Prescribed Management Rule (“PMR”) 67 of Annexure 8 of the Regulations to the Sectional Titles Act 95 of 1986 (“the Act”) provides that members may cast their votes at a general meeting either personally or by proxy, whether on a poll or on a show of hands.

Members of a sectional title scheme appoint proxies for different reasons, most often because they are not able to attend the meeting in person. Depending on the nature of the meeting and the issue/s at hand, a member may require a representative, such as a legal representative, to attend the meeting on their behalf.

There is no requirement that a proxy be a registered owner, but it is specifically provided that a proxy shall not be the managing agent of the scheme or any of its employees, or an employee of the body corporate.

The proxy shall be appointed in writing, “under the hand of the appointer”, which means that the registered owner of a unit or the owner’s duly appointed agent, who has also been appointed in writing, must complete and sign the proxy form. Only one proxy form per unit is required. This proxy form shall be completed and signed by one owner.

Should a unit be owned by a company or a close corporation, a board resolution of the directors of the company, or members of the close corporation, will be required to support the completed proxy signed by one director or member. The trustees of the body corporate may further require the report of the Companies and Intellectual Property Commission (CIPC), reflecting the registered directors of the company or members of the close corporation.

Similarly, should a unit be owned by a trust, a trustee resolution by the trustees of the trust is required to support the proxy form.

In the case of a unit owned by multiple private individuals, the proxy form should be signed by one (co-) owner, namely the owner who has been appointed by the remainder of the registered owners via a resolution, to sign the proxy form. PMR 66(1) further provides that when two or more persons are entitled to exercise one vote jointly, that vote shall be exercised only by a person (who may or may not be one of them) jointly appointed by them as their proxy.

Schemes often use standardised proxy forms which are sent to all owners together with the notice of the meeting, but owners are not obliged to use these forms. A proxy form may include specific instructions on how the proxy should vote, to which the proxy holder will then be bound.

The completed and signed proxy form, and supporting resolutions, must be handed to the chairperson before the meeting starts, unless the proxy is contained in a registered mortgage bond, which is produced at the general meeting.

Should you require one of our consultants to attend a general meeting on your behalf, or require assistance with the drafting of the various supporting resolutions, contact us at Paddocks on 021 686 3950 or at consulting@paddocks.co.za.

Image source: picturequotes.com

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