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 Question:
We are having our AGM tomorrow, but one of the owners who has been here
for a number of years collects proxies from absent owners to the extent
that he can outvote any decision at the AGM.
Is it legal for a person to hold so many proxies? In other words, he
has complete control and all the say. It seems immoral to me and against
the constitution of the country as it undermines democracy.
Answer:
Unlike some other countries, in South African law there is no limit on
the number of proxy appointments that a person can accept.
It is therefore possible for one person to represent a large number of
owners in a sectional title scheme at a general meeting which can result
in one person effectively being able to control the outcomes of any majority
decisions.
I agree with you that this is unfair and I believe the provisions of
the Sectional Titles Act 95 of 1986 or the prescribed rules would benefit
from the inclusion of a limitation in this regard.
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Newsletter:
25 May 2012 2012 to 1 June 2012 - Dullstroom, Mpumalanga, South Africa
