Requirements around calling general meetings

A body corporate is required to hold its annual general meeting (AGM) within 4 months after the end of its financial year. The meeting notice should be sent out at least 14 days prior to the meeting.

All meetings other than the AGM are called special general meetings (SGM). The notice period required to hold SGMs is 30 days but this may vary depending on the topic of the meeting.

Is the body corporate obligated to hold a general meeting?

The trustees are entitled to arrange a (special) general meeting at any point should they feel a matter needs the urgent attention and input from its members.

Did you know that a body corporate is not obligated to hold an AGM?

This is true – but there are some explicit requirements that must be met where a body corporate chooses not to hold its AGM:

  • All members must waive the right to hold the meeting.
  • They must consent to all the agenda items for the meeting.
  • In the case of a jointly owned unit, all the persons entitled must waive the right and consent to the agenda items.
  • The waiver and consent must be in writing.
  • Such waiver and consent must be obtained before or one month prior to the end of the financial year.

It is unlikely that a scheme will succeed in obtaining these requirements unless it is a well-managed small scheme with like-minded owners.

When can a shorter notice period for a general meeting be given?

The notice period for a general meeting is 14 days. The trustees do have the authority to arrange a general meeting when the need arises. The decision to do so must be contained in a trustee resolution. If the members in the scheme (25% or more of members in value) or the holders of mortgage bonds (25% or more in section numbers) request that a general meeting be held, the trustees are obligated to do so.

A notice period of less than 14 days may also be given provided that all the members have given their consent to the shorter notice period.

A general meeting may be called by only giving 7 days` notice provided the trustees provide reasons for the urgency and afford a resolution containing the reasons. If the purpose for the meeting involves the approval of alterations or improvements to the common property (30 days), or to consider the installation of pre-paid meters (60 days), the trustees do not have the authority to call a general meeting with only 7 days’ notice.

Validation of votes at a general meeting.

Although notice of a general meeting is expected, a member`s vote at a meeting is not invalid if the member did not receive notification. Reasonable effort must be made to provide notification to all members.

If notice was not given, voting may still proceed provided that voters gave their written consent, waiving their right to receive notification.

It is important to adhere to the different notice periods associated with the various types of general meetings as the matters on the agenda may require longer periods of consideration prior to the meeting. Scheme members are entitled to timeous notice periods when they are expected to participate or determine the outcome of important decisions affecting their immovable assets.    


Another blog you may enjoy: 6 Key questions around Annual General Meetings.