13 Sep How to run a successful AGM

The Sectional Titles Schemes Management Act, 8 of 2011 (STSMA) stipulates that bodies corporate must hold their annual general meeting (AGM) within four months from year-end, every financial year.

Here are important factors to consider in order to run a successful AGM:

Notice of the AGM  

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, no less than 14 days prior to the meeting. This notice period includes weekends or public holidays and is not restricted to working days only.

Quorum requirements

PMR 19(4) states that if a quorum is not present within half-an-hour from the time appointed for a general meeting, the meeting shall stand adjourned to the same day in the next week at the same place and time.

Proxies

Should a member be unable to attend, they can be represented by proxy. It is important to note that a person cannot act as a proxy for more than two members.  The prescribed proxy form must be delivered to the body corporate 48 hours before the time of the meeting, or handed to the chairperson before or at the start of the meeting.

Voting

In terms of PMR 20(2), members in arrears with their levies, or in breach of the conduct rules of the body corporate following a court or adjudication order, are not entitled to vote on ordinary resolutions tabled at the AGM.

Compulsory items of the AGM agenda

In terms of PMR 56 the following business must be discussed at the AGM:

1. Approve the minutes of the previous annual general meeting.
2. Receive the chairperson’s report for the period from the previous general meeting to date along with the 10-year maintenance, repair and replacement plan.
3. Insurance
   • Approve with or without amendment, the schedule of replacement value.
   • Determine the extent of the insurance cover in respect of:

• • • Public liability
    • Fidelity fund cover

4. Approve the budget for the administrative and reserve funds.
5. Consider the audited financial statements.
6. Note the opinion of the auditor in terms of their report included in the financial statements.
7. To confirm any amendment, substitution, addition, or repeal of the rules.
8. Appoint auditors for the ensuing financial.
9. Determine the number of trustees for the ensuing year.
10. Election of trustees for the ensuing year.
11. Giving of directions or imposing of restrictions referred to in Section 7(1) of the Act.

Minutes

Minutes of the AGM should be distributed to members no later than seven days after the meeting. According to PMR 27(4), all members should be supplied with the minutes within 10 days of submitting a written request.

Author: Danielle Crewe, Senior Property Manager (Sectional Title)