A proxy is an individual who is appointed to represent a condominium owner at an owners’ meeting. The proxy is appointed through a proxy form which authorizes them to attend the meeting for any of the following reasons:
- To count towards quorum,
- To vote on routine matters, and
- To nominate owners for director positions, and vote on matters subject to specific instructions in the completed proxy form.
The condominium corporation’s board of directors is responsible for the lawful use of proxies, an obligation which can be delegated to the condominium manager, management provider business or a third party.
When administering proxy forms, condominium managers and management provider businesses must remain neutral, ethical and professional, ensuring they uphold their obligations under the law.
Section 53 of the CMSA and section 33 of the General Regulations outline the rights and responsibilities of licensees around the solicitation of proxy forms. Among the many obligations, licensees are not allowed to solicit proxies when the subject matter of the meeting in question includes:
- Any matter directly related to the licensee
- The removal or the election of one or more of the directors of the client
- Any other prescribed matter
Managers can, however, facilitate the use of proxy forms, including by distributing, collecting or holding proxy forms. Managers can also solicit proxy forms if it is solely for the purpose of establishing quorum at the meeting.
In the interest of compliance, the CMRAO may take action against a licensee who is the focus of a complaint for not adhering to their legal and/or ethical obligations when dealing with proxies. For example, the registrar may take action if the licensee:
- failed to remain neutral in the election of directors
- delivered inaccurate information to owners
- gave preferential treatment to owners known to be favourable to specific director candidates
- neglected to properly record the attendance of proxies at meetings
The CMRAO’s guide for licensees provides further information about the use of proxies and proxy forms.