An annual general meeting (AGM) of a body corporate is held once a year and must be within four months after the financial year end. It is a very important meeting that all owners should attend as it provides an opportunity to assess the performance of the body corporate and its trustees.
The AGM is a great opportunity for owners to keep up to date and stay abreast of how the body corporate is performing and how the complex is being managed. It also brings about an opportunity to determine what projects are planned for the coming year and if any special levies are being proposed for the coming year.
Some of the items that are typically discussed at the AGM are –
- The financial statements of the body corporate
- The ten-year maintenance plan of the body corporate
- Approval of the budget for the coming year
- Appointment of trustees and chairperson for the coming year
- Ensuring insurance levels are appropriate
- Ensuring that the reserve fund levels are in accordance with the legislated threshold
- Levy increases or special levies
In order for an AGM to take place there must be a quorum present at the meeting. The meeting cannot take place if there is no quorum. In most cases a quorum is 33.33% of all owners should be present in person or by way of proxy. If there is no quorum the meeting gets postponed for a week later and at the subsequent meeting, the quorum requirement will not be applicable. That means that as long as there are at least 2 or more owners present, the meeting will be allowed to continue.