21 Jul Your voice should be heard: This is why you should attend your next AGM
If you have recently acquired a property in a sectional title scheme, the thought of attending an annual general meeting (AGM) might feel overwhelming. However, this gathering is not just another administrative formality- it’s a crucial opportunity to stay informed, protect your investment, and have a say in how your complex is managed. Here’s what you need to know about AGMs and why your attendance matters.
Why should you attend an AGM?
An AGM is a legal requirement under the Sectional Titles Schemes Management Act of 2011. The body corporate is responsible for submitting financial statements and providing updates on important matters, including maintenance projects and potential special levies. As an owner, here are three excellent reasons to participate in the next AGM:
- Review the financial health of the body corporate.
- Ask questions about how funds are managed.
- Participate in decisions that may affect your property value.
Timing and notice period.
AGMs must be held within four months after the financial year ends. Owners must receive a minimum of 14 days’ notice before the meeting. This gives you enough time to review the agenda and prepare any questions.
Essential documents for owners
Before attending, you should receive:
- Draft annual financial statements.
- Proposed administrative budget and maintenance budget for the coming year.
- Schedule of replacement values (for insurance purposes)
- Proxy form (for appointing someone to vote on your behalf if you cannot attend)
Understanding quorums
A quorum is the minimum number of attendees required for the meeting to proceed. The new legislation calculates quorum based on the participation quota (PQ) value of each section:
- Schemes with four or fewer sections: 66.66% quorum required.
- Schemes with more than four sections: 33.33% quorum required.
If a quorum isn’t met, the meeting must be rescheduled.
What’s discussed at the AGM?
The meeting typically covers three key areas:
- Financials: Reviewing past financial statements and approving the budget for the next year.
- Insurance: Updating replacement values for each section, confirming public liability amount and ensuring that the scheme has sufficient fidelity guarantee cover.
- Trustee elections: Appointing new trustees and setting any restrictions on their powers.
How does voting work?
Decisions at an AGM are made through a voting process, which can be conducted in three ways:
- Show of hands.
- Secret ballot.
- By Participation Quota.
Votes are passed by a majority in value, meaning owners with higher PQ values have a stronger influence.
What happens after the AGM?
Once the meeting concludes, trustees must:
- Appoint a chairperson.
- Implement any resolutions, such as levy increases, legal action against non-payers and setting the interest charge per annum on defaulting owners.
- Notify owners of any changes within 10 days.
The bottom line
Skipping the AGM means missing critical discussions directly impacting your investment. By attending, you ensure transparency, accountability, and a say in managing your community. So, mark your calendar, review the documents, and make your voice heard at your next AGM!