Annual General Meetings (AGMs) play an important role in Victorian owners corporations. They provide a clear opportunity for lot owners and committees to share information, offer feedback, and plan vital aspects of owners corporation management, including financial responsibilities, levies, maintenance fees and more.
AGMs are formal processes, and clear guidelines must be followed to ensure the meeting meets expected requirements. Below, we break down how to prepare for and run an effective AGM.
How to Prepare for an Effective AGM
Dedicating time to planning and preparing for your AGM ensures the meeting runs smoothly and that everyone is clear on why the meeting is being held and what their role is in terms of engagement.
The owners corporation secretary should begin by contacting all lot owners to ask whether they have any new matters to discuss. If you have an owners corporation manager, they can start this process on your behalf.
Each AGM also serves as an opportunity to ensure that matters from the previous meeting have been actioned. Effective preparation includes sharing the following with lot owners for their consideration before the meeting:
- Forwarding minutes from the previous AGM, highlighting any issues or outstanding actions.
- Asking for new issues or meeting items from the lot owners.
- Preparing financial statements and reports, along with the proposed budget for the coming year and sharing with lot owners ahead of the AGM.
- Preparing any maintenance and repair statements or reports for consideration, along with any levies or changes to fees they might require.
- Sharing any invitations or nominations for new committee members.
Once this has been shared and new meeting items collated from lot owners, it should be compiled into an agenda, shared with lot owners at least fourteen days prior to the meeting, and include details of the date, time, and how to join the meeting. Lot owners should be able to join the meeting in person or virtually.
Consumer Affairs Victoria has a useful resource to aid preparation for AGMs:Owners corporation annual general meeting task list.
The Role of the Chairperson and Meeting Quorum
The chairperson leads the AGM. If they are unavailable, lot owners can elect another lot owner or the owners corporation manager to chair the meeting, but this must be recorded in the meeting minutes.
A quorumis the minimum percentage of total votes or lot entitlements required to make formal decisions. Count all attending members and any proxy or power-of-attorney holders. Without a quorum, the meeting can still proceed, but decisions are interim only and cannot be acted on for 29 days.
The Role of Proxies at an AGM
If any lot owner cannot attend the AGM, they can appoint someone else to represent them and make decisions on their behalf, known as a ‘proxy’.
With the lot owners’ permission, proxies can:
- Vote and voice decisions on behalf of the person they’re representing.
- Vote in ballots on behalf of the person they’re representing.
Proxies must be nominated in writing and shared with the owners corporation secretary before the AGM. They cannot turn up on the day and participate on behalf of the lot owners without prior communication.
Our helpful guide on proxies and voting is a useful resource for further information.
Capturing Minutes and Other Feedback
Every AGM must be documented through meeting minutes. Typically, the owners corporation secretary or another nominated committee member will keep the minutes throughout the meeting.
As a general rule, meeting minutes should include:
- The time, date and location of the meeting.
- Names of all lot owners present, the names of those who have provided proxies, and the names of those proxies.
- Any agreed actions on agenda items, who is responsible for actioning them and any timeframes.
- The outcome of any voting on resolutions.
Meeting minutes should document any other feedback or points raised by lot owners, even if those points require no further action.
AGM meeting minutes must be documented clearly; otherwise, owners corporations could be in breach of the Owners Corporation Act.
Consumer Affairs Victoria has a useful resource for effective AGM minutes: Owners corporation annual general meeting minutes.
What to Do After the AGM
After your AGM, act quickly on any decisions made. Distribute the minutes, follow up on outstanding items, and ensure interim decisions are properly tracked within the required timeframes. Clear post-meeting processes help avoid confusion and keep your owners corporation moving forward.
If you’re unsure about any aspect of running an AGM, partnering with an experienced owners corporation manager can make all the difference. The Above OCM team are highly experienced in supporting timely, effective and positive AGM processes.
Contact us today for further guidance.
