CONDOMINIUM PROXY 101: A SIMPLE GUIDE

We often are asked about proxies, how they work, what’s required, how are they supposed to be completed, etc. The following article is intended to be a quick and easy guide to proxies, types of proxies, the information a proxy must contain, the duration of a proxy, the use of a proxy, and the limitation of a proxy.

 First, a proxy is a legal document that allows a unit owner to appoint another person (the “proxy holder”) to represent them at a meeting and to vote on their behalf. There are two types of proxies, general and limited. General proxies allow the proxy holder to vote on any issue in the matter the proxy holder sees fit. Limited proxies list the items that a proxy holder may vote on and instruct the proxy holder how to vote. In a condominium context, a general proxy may only be utilized to establish a quorum. For all other matters in a condominium, a limited proxy must be used.   

 What are the legal requirements of a proxy:

Proxies are governed by Section 718.112(2)(b)(2) of Florida Statutes. A properly drafted proxy must include the following:

1.      The name of the unit owner;

2.      The name of the designated proxy holder;

   a.  The owner can either specifically designate somebody, but if there’s also a default proxy holder (typically an officer of the Association) who serves as the proxy holder if the owner does make a specific proxy holder designation.

3.      The date of the meeting at which the proxy will be utilized;

4.      The item that the proxy holder will vote upon, along with an indication on how the proxy holder should vote;

5.      The owner must sign, date, and include their unit number on the proxy.  

How long is a proxy valid?

A proxy is only valid for the specific meeting for which it is given. However, if a meeting is adjourned to a later date, the proxy can remain effective for up to ninety (90) days.

 How can a proxy be utilized?

Per Section 718.112(2)(b)(2) of Florida Statutes, a proxy may be used to:

1.         Establish a proper quorum;

2.         Vote on the waiver or reduction of reserve funding;

3.         Vote on an amendment to the articles of incorporations or bylaws;

4.          Vote on any matter requiring or permitting a unit owner’s vote. 

However, Florida law explicitly states that a proxy cannot be utilized in the election of board members.

 Overall, proxies are an essential means of conducting business for a condominium association.  It’s generally the only way an Association can obtain a quorum for owner’s meeting and garner enough participation to vote on those matters which require owner approval. Now that you understand the basic components of the proxy, hopefully, they won’t be so daunting.

 Please note that the information contained is intended only for Florida Condominium Associations. The law on Homeowner’s Associations varies significantly when it comes to proxy usage.