There has been some controversy recently regarding whether or not an executive committee or chairperson are within their rights to disallow a solicitor, who is acting on behalf of their client lot owner(s) and is present at a general meeting of the owners corporation with their client, from providing input and/or voting on behalf of their client without a valid proxy.
In relation to the general meeting receiving input by a solicitor on behalf of their client lot owner(s), the law recognises that when a solicitor and client enter into a retainer (i.e. the solicitor-client relationship) the solicitor becomes the agent of his client (the principal) so that anything done by a solicitor within the scope of his/her retainer is done for and on behalf of their client. This relationship is not necessarily created by a power of attorney but rather by a retainer agreement. Best practice dictates that the retainer be in writing. However, this not always need to be the case, e.g. if the solicitor is instructed to attend the meeting on short notice.
To be able to vote on behalf of a lot owner at a general meeting, the law requires the lot owner to appoint a person by proxy. Therefore, a client who wants their solicitor to vote on their behalf at a general meeting is required to appoint their solicitor by proxy otherwise the client runs the risk that their vote will not count or that the chairperson may rule their vote “out of order” if evidence of a valid proxy is not provided. Please also note that there are deadlines for the receipt of signed proxies.
If you need specialist advice regarding any motions, the appointment of proxies or require representation at an owners corporation general meeting, please do not hesitate to contact Michael Pobi on (02) 8710 3430.
Please note that the information contained in this article is not legal advice and should not be relied upon as such. You should obtain legal advice before you take any action or otherwise rely upon the contents of this article.
Recent Comments