Ensure your open proxy vote aligns with your opinions
The truth about open proxies and its rules
Category News
The Homeowners Association of South Africa is an important organisation governing body corporates, sectional title schemes and the management of the community. It has become an integral part of how property managers, private estate owners, residents and property owners develop harmonoius laws to govern crucial decisions. However, voting in these instances is no small matter and we look at why granting open proxies should be decided after much deliberation.
What does granting an open proxy vote do?
Within the context of the sectional title schemes and the HOA, an annual general meeting is held to discuss and outline progress. While granting an open proxy may encourage increased participation, it also may have significant consequences. Some of the most pertinent considerations to note are the following:
Handover of control
While most individuals who grant open proxies to other members enjoy the convenience this provides, it does result in a lack of control over how the voting is cast. Proxy holders are not legally obligated to make the same decisions as the original member. This could mean that the outcome may not go as intended.
Risk of misuse
Open proxies can be mishandled and opinions may be easily misconstrued during voting stages. Homeowners would be wise to remember that proxy holders could vote in their personal favour, sidelining the initial decision. Conflicts can arise and in severe cases, legal disputes have been put into motion because of this. A lack of communication and trust will derail the integrity of the meeting and further proposals.
No room for accountability
Proxy voters have no responsibility to the HOA. The responsibility lies with the granter of the open proxy. Thus, it is challenging to hold open proxies accountable for decisions that don't benefit the organisation or community. The majority of homeowners may feel unfairly unrepresented and be inclined to decrease future cooperation.
Consequences within the community
Tensions could arise from the misrepresentation of voting. This may strip any previously held agreements and negatively affect sectional title schemes and the HOA. Keeping communities happy with decision-making that positively contributes to the well-being and best interests of all residents is the ultimate goal.
Unintentional backlash
The AGM's purpose is to align the needs and fundamental opinions of all. If bad decisions are made, it can affect property values in the neighbourhood, quality of life for residents and overall maintenance and upkeep of essential areas. When deciding to grant an open proxy, reaching a unanimous decision of opinion with the voter is of utmost importance. You don't want to deal with unresolved matters later on down the road.
Choose peace of mind over convenience
Open proxies have their place and value within the HOA. However, limitations and careful instructions should be put in place to ensure smooth governance across the board. It is in the homeowners' best interests to only grant open proxies to individuals who are capable of adequately and fairly representing them. This ensures comfortable protection against unwanted strife within the AGM and a well-oiled HOA presiding over happy communities.
REALGLEN Properties has expert property practitioners on hand to assist you with the nuances of property decision-making. From offering in-depth knowledge of the HOA requirements to finding the perfect place for you, we can hold your hand through daunting decisions. Contact us today.
Author REALGLEN Properties
Published 19 Oct 2023 / Views -