Everything you need to know about a strata First Annual General Meeting in
What is an Annual General Meeting (AGM)? It’s a meeting that must be held with lot owners annually.
The purpose of an AGM is for lot owners to have an opportunity to raise certain issues relating to their property. In addition to this, the yearly AGM is when a committee is elected and crucial decisions are made for the upcoming year. An AGM cannot exceed 15 months between meetings.
As you can image, the first AGM is the most significant, and imperative to the successful running of a property. The first AGM will determine that all the relevant information and data has been handed over from the developer, adopting budgets which will lead to the setting of the levies for the next 12 months, reviewing insurance policies, reviewing the bylaws, appointing an auditor, reviewing any contracts and choosing committee members. If an AGM is not held a fine up to $1,100 can be charged to the original owners.
Facilitating the first or any AGM is not as simple as just saying to owners “see you tomorrow at 6.00pm!” There are rules and legislation you must take into account to ensure your meeting is considered ‘legal’.
The following guidelines are to assist you to prepare for your first or next AGM:
Send the notice of the meeting:
You must send out notice at least 14 days before the scheduled date to all members. You must state the following:
- the date, time and place of meeting
- the text of any special resolution or unanimous resolution
- the financial statements setting out income, expenditure, assets and liabilities
- the proposed budget
- a statement that lot owners can appoint a proxy
Create an agenda:
An agenda needs to be sent out with the notice of the meeting. For a first AGM, the agenda should also include the following :
- election of a committee
- election of chairperson and secretary
- appointment of registered manager
- instruments of delegation for the manager, committee, chairperson and secretary if required
- registration of the owners corporation for taxation purposes. Your owners corporation may need to have a Tax File Number and an Australian Business Number (ABN)
- provision and details of insurance
- additional insurance; for example, to protect office bearers
- setting up a bank account
- method of keeping books and records
- letterbox and sign, if not already provided
Ensure a quorum:
For the AGM to officially start, a quorum needs to be achieved. This mean, you’ll need at least 50% lot owners in attendance.
You can continue with an AGM without a quorum, however, no decisions will be final. They will be considered as ‘interim’
Select a chairperson:
A chairperson must be elected by the owners corporation committee before the AGM. If one is not elected, your committee may be considered as not legal.
If you don’t have a committee, the chairperson can be a lot owner.
Select a secretary:
The role of a secretary is they are legally responsible for specific duties relating to the property. Including organising meetings, sending out notices, receiving ballots and proxies for lot owners.
The secretary also prepared the agendas and sends out the notice of meetings.
Take minutes of meeting:
Minutes of the meeting must be recorded in detail and kept in a secure accessible location. This is generally the secretary’s responsibility.
The minutes should include the following:
- names of lot owners who have provided proxies
- text of all resolutions
- names of proxies present
- outcomes of on any voting on resolutions
- names of lot owners present
After the meeting:
Once you’ve had your first AGM meeting your owners corporation is considered to be activated. Meaning you will need to action a few things to provide evidence that the owners corporation is a legal entity. You will now have to action the following steps:
- Open a bank account
- Take out insurance in its name
- minutes of meeting recording the decision to open an account or take out insurance.
For more information on Annual General meetings, states/territory’s guidelines are below. Learn tips on how to run strata meetings and committee meetings.
|New South Wales||Fair Trading|
|Tasmania||Consumer, Building & Occupational Services|
|Northern Territory||Northern Territory Government|
|Western Australia||Government of Western Australia|