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Sectional title properties series (Part 4) – Annual General Meetings

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Sectional title properties series (Part 4) – Annual General Meetings

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Previous: Sectional title properties series (Part 3) – Who are the Trustees?

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.

Next: Sectional title properties series (Part 5) – The Reserve Fund Requirement

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Shameer Chothia is currently an Employee Benefits Consultant at Momentum Consultant and Actuaries. He is the chairman of the Rhine Stone Body Corporate and the Founder and Head Financial Coach at LMS Financial Coaching. Shameer is deeply passionate about financial literacy and education. He truly believes that there is duty to empower people with education, which makes a difference in their everyday lives. To achieve this, he founded LMS, actively changing lives by empowering people with financial knowledge

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