An AGM (Annual General Meeting) is a legally mandated once a year meeting of the lot owners in the strata. The AGM serves as a formal platform for making important decisions about the strata scheme. It’s where lot owners can vote on various matters affecting the complex.
Common agenda items at AGM
- Financial Reports: Presentation and approval of the past year’s financial statements, including the administrative and capital works fund accounts
- Budget Approval: Approval of the budget for the next year, including setting levy amounts for the administrative and capital works funds
- Election of Strata Committee: Electing or re-electing members to the strata committee, which is responsible for the day-to-day management of the strata scheme
- Maintenance and Repairs: Discussion and decisions on major maintenance or repair issues and any proposed capital works
- Insurance: Review and renewal of the strata insurance policy
- By-Law Review: Reviewing and making any necessary changes to the strata scheme’s by-laws
Legal Requirements
- Notice of Meeting: Lot owners must be given notice of the AGM, typically 14 days in advance, including the agenda, date, time, and location
- Quorum: A minimum number of members (a quorum) must be present for the meeting to proceed and make valid decisions. This is to help minimise chances of any unethical or illegal actions by only inviting lot owners that you know will help push your agenda items, and not necessarily representative of the entire strata community/.
- Voting Rights: Lot owners have the right to vote on resolutions. The voting process and rights can vary depending on the strata scheme’s by-laws and state legislation
- Minutes: A record of the meeting (minutes) is kept, documenting the discussions, decisions, and voting outcomes
Common FAQs about Strata AGMs
Can I vote if I can’t attend the AGM?
Yes, you can usually vote by proxy, which means appointing someone else to vote on your behalf.
What if the AGM doesn’t have a quorum?
If a quorum isn’t met (minimum number of attendance required), the meeting may be adjourned and rescheduled. The rules for this scenario vary by state and territory in Australia.
How are AGM agendas set?
The strata committee or manager usually sets the agenda, but lot owners can also propose agenda items, subject to the strata scheme’s by-laws and notice requirements.
Who can attend an AGM?
All lot owners in a strata scheme are entitled to attend the AGM. Tenants may also attend if they have been nominated by the owner and in some cases, where they represent a significant portion of residents.
What is discussed at an AGM?
Common topics include financial reports, budget approvals, elections of strata committee members, maintenance issues, insurance, and any changes to by-laws.
How are decisions made at an AGM?
Decisions are made through voting. Each lot owner usually has one vote, but this can vary based on the strata scheme’s by-laws and the unit entitlements.
Can I vote if I can’t attend the AGM?
Yes, you can usually vote by proxy, which means appointing someone else to vote on your behalf.
