03 May Frequency and notice needed for an AGM

When should AGMs be held?

The annual general meeting (AGM) of a body corporate is required to be held within four months following the end of the financial year. During the period that immediately follows the end of the financial year; the appointed auditors must perform an audit of the financial affairs of the body corporate and submit financial statements to the trustees on their findings.

How much notice is needed?

The Sectional Title Act requires the notice of an AGM to be sent to all owners and registered bond holders of sections in the scheme, not less than 14 days prior to the meeting. This notice period includes weekends or public holidays and is therefore, not restricted to working days only.

The notice of a general meeting, such as an annual general meeting, may be sent via email but must also be sent via post. It is important that the trustees plan the date of the meeting well in advance to give the managing agent sufficient time to prepare the necessary documents to be included in the AGM notice.

An AGM may be declared invalid if the members have not been informed of the meeting in good time (in a shorter period than the required 14 days). Only when all the members present (in person or by proxy at the AGM) approve a sorter notice of the meeting, may the meeting proceed and may it be accepted as a valid meeting. The minutes of the meeting must reflect the resolution taken by the members present to accept the shorter notice given.

You can read our first blog here: What you need to know about AGMs – 6 Key questions

Next week’s blog: Which documents are needed before by owners before an AGM?