Q & A: Controlling Proxy Votes

I'm part of an association, and there's a couple big votes at our upcoming meeting. My question is related to the death of a fellow unit owner; can anyone who may have her proxy vote for her? Is it legal? She was buried very recently. Some other unit owners are asking the same question. I don't know how her estate is being dealt with, but she has immediate family that I imagine would take ownership of her unit.

—Above Board

“If the association is a non-profit corporation, the answer is provided by the New Jersey Nonprofit Corporations Act. Specifically, N.J.S.A. 15A:5-18(a) provides, in relevant part, that 'A proxy shall not be revoked by the death or incapacity of the member but the proxy shall continue in force until revoked by the personal representative or guardian of the member,'” says Mary Barrett, a shareholder attorney at the law firm of Stark & Stark based in Lawrenceville. “There are no cases in New Jersey which address this portion of the statute. For your situation, the holder of the proxy may continue to act by proxy until such time as it is revoked by the executor of the deceased unit owner's estate or other personal representative legally entitled to take such action. If the proxy is coupled with an interest, revocation is more complicated and requires a review of the terms of the proxy and the interest to which it is coupled. Keep in mind that proxies have a limited life and this proxy will expire at some point.

“The Nonprofit Corporations Act further provides that: "A proxy shall not be valid for more than 11 months unless a longer time is expressly provided therein, but in no event shall a proxy be valid after 3 years from the date of execution." If the deceased unit owner's proxy is exercised at your upcoming meeting, it should be reviewed to determine when it was executed and when it expires. Your association's governing documents may give additional guidance on proxies. If the association is not a non-profit corporation but was formed as some other entity, the Nonprofit Corporations Act will not apply and you must look to the association's governing documents for guidance.”

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