The term "proxy" has two meanings. First, it refers to a person who is given the authority to represent, vote and exercise the powers held by the person who designates the proxy (the "Homeowner"). Second, the term "proxy" also refers to the document under which the Homeowner gives the power to the person who will represent the Homeowner at a meeting of the Homeowners' Association. Thus, a proxy document is actually a special power of attorney. In many cases, the proxy is given to another Homeowner. A land developer may provide for the formation of an association of the people who own homes in a given area. The purpose of a Homeowners' Association is to improve or maintain the quality of the area. Generally all Homeowners automatically become members of the association upon purchasing a residential unit within the development. The association may be formed as a corporation or may operate more informally as simply an association of homeowners. The rules governing such associations are generally stated in a document of formation (Articles of Incorporation) or in the Bylaws of the association. Additional requirements or restrictions on such associations may be contained in state law. This document also may be of use to an officer of the association. In anticipation of a meeting, the officer (most likely the secretary) can include partially completed proxy statements when mailing out notice of a meeting. Parties who are entitled to vote but who won't be able to attend the meeting can then locate a proxy to represent their interests. By including the proxy, the association will increase the likelihood of having a quorum present at the meeting. |