8/12/2019 advice.privatepropberty

1/1

Paddocks

Paddocks is a specialist sectional title and home owners' association firmthat provides a range of products and s ervices throughout South Africa.Paddocks is headed by Prof Graham Paddock, who is an authority onsectional title and HOA law and practice. Paddocks offers certificate courses,short courses, legal advice, an online support platform, publications andmore.

Website - More Posts

Send to Friend Share limit , limitation , owner , property , proxies , proxy , sectional title scheme

There seems to be some confusion of late as to whether or not a person can hold more than twoproxies. The simple answer is yes: a person can currently hold more than two proxies there is nolimit at the moment.

At the moment is key here, and this seems to be where the confusion comes in. Contrary toinformation being circulated, the proxy limitation has not come into effect yet. In terms of the SectionalTitles Schemes Management Act No. 8 of 2011 (STSM Act), which is not in operation yet, there will bea limit of two proxies for any person. Section 6(5) of the STSM Act states the following: (5) A membermay be represented in person or by proxy at such meeting: Provided that a person must not act as aproxy for more than two members.

Currently, under the Sectional Titles Act No. 95 of 1986 (the Act), there i s no proxy limitation. It is a lsoimportant to point out that rule 67 prescribed under the Act has not been changed. So unless ascheme 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 generalmeeting personally or by proxy and a proxy need not be an owner of that scheme. The proxy must beappointed 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 writi ng. The signed proxy form must be handed to the chairpersonbefore the meeting starts unless it is contained in a registered mortgage bond and the bond isproduced 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 the one person as theirproxy, 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 oneowner will not be legal and owners will either have to attend meetings or appoint different proxies tohave their votes exercised at meetings they cannot attend.

How many proxies can one person have?

More

Page 1 of 1How many proxies can one person have? | Private Property Advice Centre

2013/03/04http://advice.privateproperty.co.za/?p=3329