Proxy Voting in Strata Meetings: How It Works and How It's Abused
Proxy voting exists for a good reason: not every owner can attend every meeting. But in practice, proxies have become one of the most contentious aspects of strata governance. Stories of individuals collecting dozens of proxies to push through self-interested decisions are disturbingly common.
The 2025 NSW reforms addressed some of the worst abuses, but understanding how proxies work remains essential for every owner.
How Proxy Voting Works
A proxy is a written authorisation allowing another person to attend and vote at a strata meeting on your behalf. In NSW, the key rules are:
- Any lot owner can appoint a proxy for any general meeting
- The proxy must be in the approved form and lodged with the secretary at least 24 hours before the meeting
- You can direct your proxy on how to vote on specific resolutions, or give them discretion
- A proxy appointment is valid for the meeting specified and any adjournment of that meeting
Who Can Be a Proxy?
Any adult can be appointed as a proxy — they don't need to be an owner in the scheme. This means you can appoint your partner, a family member, a friend, or even a professional. The key is choosing someone who will represent your interests.
The Problem: Proxy Farming
"Proxy farming" is the practice of systematically collecting proxy forms from owners who don't intend to attend meetings. It's often done by committee members, building managers, or real estate agents who have ready access to owners.
The dangers are significant. A single individual holding ten or fifteen proxies can effectively control the outcome of any resolution. This can be used to block necessary levy increases, push through favourable contracts with related parties, prevent the removal of underperforming committee members, or approve changes that benefit a minority of owners at the expense of others.
| Proxy Farming Tactic | How It Works | Why It's Harmful |
|---|---|---|
| Door-knocking before meetings | A committee member visits units to collect blank proxies from disengaged owners | Owners don't know how their vote will be used |
| Pre-filled proxy forms | Forms are distributed with voting directions already completed | Owners may sign without understanding the resolutions |
| Managing agent collection | The strata manager collects proxies on behalf of a committee faction | Conflicts of interest — the agent may benefit from certain outcomes |
| Investor block coordination | One investor or agent coordinates proxies across multiple lots they manage | Rental investors may prioritise short-term cost savings over building health |
What the 2025 Reforms Changed
The Strata Schemes Legislation Amendment Act 2025 made important changes to proxy voting:
Limits on Proxy Accumulation
The reforms clarified and strengthened limits on the number of proxy votes any one person can exercise. Under section 26 of the SSMA, a person can only exercise proxy votes for a maximum of 5% of the total number of lots in a large scheme (over 20 lots). For smaller schemes, specific limits apply based on the number of lots.
Company Nominee Reforms
Previously, if a company owned ten lots, it needed to provide ten separate company nominees to exercise voting rights — which was both impractical and a loophole. The 2025 reforms addressed this by streamlining the process while maintaining limits on vote concentration.
Proxy Form Transparency
The reforms enhanced requirements around proxy form disclosure, making it harder for proxies to be collected without proper documentation and owner awareness.
How to Protect Your Building
If You Can't Attend: Direct Your Proxy
Never sign a blank proxy form. Always specify how you want your proxy to vote on each resolution. If you don't know the resolutions in advance, instruct your proxy to vote "against" anything you haven't specifically approved — this prevents your vote from being used for purposes you didn't intend.
If You're on the Committee: Monitor Proxy Patterns
If the same person consistently holds a large block of proxies, raise the issue at the meeting. The chair should verify that all proxies comply with the accumulation limits and are in the approved form.
If You Suspect Abuse: Challenge It
If you believe proxy votes have been collected improperly — through coercion, deception, or by exceeding the legal limits — you can challenge the validity of those proxies at the meeting. If the challenge is unsuccessful, you can apply to NCAT for an order invalidating the affected resolutions.
The Digital Proxy Question
Some strata schemes are beginning to adopt electronic meeting platforms that allow online voting. While the legislation still requires proxy forms to be in writing, the trend toward digital meetings may eventually reduce the need for traditional proxies — allowing more owners to participate directly, even if remotely.
Practical Tips for Owners
If you receive a proxy form from someone you don't know or didn't request, be cautious. Read the resolutions before you sign. If you're uncomfortable giving someone your proxy, attend the meeting yourself — even briefly. And if you do appoint a proxy, check in with them afterward to confirm how they voted.
How UnitBuddy Helps
Informed owners make better voters. UnitBuddy gives every lot owner the financial transparency they need to participate meaningfully in strata governance — whether in person or by proxy.
- Financial transparency — access clear, real-time breakdowns of your building's income, expenses, and fund balances so you can evaluate motions with confidence
- Committee accountability — track decisions, votes, and spending history so you know whether your committee is acting in the building's best interest
- Informed voting — understand the financial impact of proposed resolutions before you cast your vote or appoint a proxy
Proxy voting is a tool for participation, not a weapon for control. Use it wisely, and don't let anyone else use yours without your informed consent.