Quote:
Posted By TimB4 on 11/18/2015 6:15 PM
Steve,
Expecting that your Association is incorporated as a nonprofit (most are but check to be sure), then
Michigan nonprofit corporation act would be applicable.
Sections
450.2421,
450.2422 and
450.2423 address proxies.
In my layman's reading, it appears that the proxy is only irrevocable if written notice of withdrawing the proxy or assigning the proxy to another is presented. Simply showing up at the meeting does automatically revoke a proxy in MI.
Additionally, if the proxy itself was titled/labeled/identified as irrevocable, is valid once given and can not be revoked.
IMO, only 2421 is applicable. Proxy is revocable at discretion of HO. Showing up at meeting and claiming right to vote should be all that's needed to negate proxy.
In all of the subsections of 2422 (irrevocable proxies), the proxy holder has specific economic rights in the property itself. Example would be a mortgage holder. What allows the proxy to be irrevocable is that the interests of the proxy-holder in the property are separate and distinct from the HO. The HO cannot take back the rights of that proxy-holder to vote - but that right to vote could not exist if the proxy-holder did not have an actual interest in the property itself.
As I read it, 2421 applies in all cases except where someone who has a property interest is given an irrevocable proxy. Then 2422 and 2423 apply.
Sikubali jukumu. Read all posts at your own risk.