Every year, the owners corporations must have a meeting of all lot owners. This meeting is called the annual general meeting (AGM).
At the AGM, all matters relating to the property are discussed, and major decisions are made.
It is highly recommended that all owners attend the AGM, because it’s the best opportunity to be involved in the managing of your property, and be involved in the decision-making process.
If you can attend the meeting in person, you are able to discuss all matters and ask questions face to face, rather than rely on email or written correspondence for information.
What’s covered at the AGM?
The following matters should be discussed at the AGM:
- Elect the body corporate committee, including a chairperson, treasurer, and secretary,
- Go over the minutes from last year’s AGM,
- Discuss and decide on any by-laws,
- Examine the owners corporation’s income and expenditure for the past financial year,
- Look at the administrative fees being paid for maintenance, insurance and repairs,
- Assess the assets and liabilities of the owners corporation at the end of the financial year,
- Decide on any maintenance works that need to be done, and create a maintenance plan,
- The committee must make a report,
- Consider a budget for the next financial year,
- The owners corporation manager must make a report, and
- Any complaints or other issues can be aired.
If there are too many items to discuss at the AGM, some items can be left to a special general meeting.
Planning for the AGM
The owners committee and the owners corporation manager should contact all lot owners to find out if there are any matters they would like to discuss at the AGM. These items can be added to the agenda.
The minutes from the previous year’s AGM should be forwarded to all lot owners.
Any necessary reports should be forwarded to all lot owners ahead of the AGM.
An agenda should be prepared, which includes all motions.
It is sometimes a good idea to send a cover letter to lot owners, outlining any background to pertinent issues.