13 Jul What actions must trustees take following an AGM?
There are a number of points that need to be actioned following an Annual General Meeting. We cover those points in this blog:
- Appointment of a chairperson
The Chairman is appointed at the first trustee meeting following the annual general meeting. The trustees appointed at the annual general meeting vote on the appointment of the chairman by majority vote. This vote can either be done by show of hand or by secret ballot. The appointment of the chairman, as for the trustees, is for the duration of the year until the next annual general meeting where all the trustees resign automatically.
- Passing of a resolution to increase the levies
This is the most important resolution that the new trustees must sign. The resolution brings into effect the decision taken at the annual general meeting by the owners to increase the levies. Once the resolution is signed the managing agent can proceed to increase the levies. All owners must be informed of the increase in the levies within a period of 14 days following the annual general meeting.
- Passing of a resolution to raise interest on outstanding levies
The trustees are entitled to raise levies on behalf of the body corporate on all levies paid by owners that are in arrears. This resolution confirms the decision of the trustees and indicates what the interest rate will be and after how many days interest may be raised. Owners must be informed of the decision to raise interest on levies in arrears.
- Passing of a resolution mandating the managing agent to take legal action against defaulting owners on behalf of the body corporate
The body corporate is entitled to institute legal action against owners who are in arrears or who continue to not pay their levies despite notices from the managing agent to do so. The resolution to hand over owner stipulates after what period of time owners must be handed over and also authorizes the managing agent to do so on behalf of the body corporate.
- Passing of a resolution to acquire fidelity insurance on behalf of the body corporate
The owners of the scheme must consider taking out additional fidelity insurance cover in the event that money belonging to the body corporate is stolen by either the trustees or an employee of the body corporate. Subject to the decision taken at the annual general meeting, this resolution must be signed by the trustees as proof of the decision taken.
- Informing the owners of any levy increase within 10 days of the AGM
The sectional title act requires that all owners are informed of the increase in levies following the annual general meeting. The letter must advise owners of the percentage increase as well as the date from when the increase will be effective and must also include a schedule of levies indicating the new levies that will be charged.