Your One Big Chance to Show Off – Don’t Mess it Up

Holding an AGM

1. What is the task?

This operating procedure is used to call an annual general meeting (AGM) for an owners corporation. This is a compulsory annual meeting to which all owners are invited.

An AGM is the main way an owners corporation and its strata manager are accountable to lot owners. This meeting transacts important business, much of it required by the Owners Corporations Act 2006 (Vic). This includes, for example, considering the accounts, setting levies for the new year, and electing a committee.

8. What are the common roadblocks to holding AGMs?

• The date isn't set at last year's meeting, so it doesn't go in the diary one year out.It's then up to the manager or the incumbent committee to call it as the year drags on.
  Solution: Set the date for the next AGM as the last item at each AGM.
• The accounts have not been well maintained and closed off in time.
  Solution: See our Standard Operating Procedure – Preparing annual financial statements.
• An audit has not been arranged to go out with the notice of meeting.
  Solution: If there is no time to get the audit done and sent with the notice, you can table it at the meeting. However, it is best to include it in the papers. It will make owners comfortable with the draft accounts. See Operating Procedure – Arranging an audit of the financial statements.
• The committee is procrastinating about the budget for the levies at the meeting.
  Solution: Prepare a draft budget for the committee. See Operating Procedure – Presenting an annual budget. Advise the last day for their approval before it is sent out with the AGM papers.
• Sinking fund reports, valuations, and other reports are delayed.
  Solution: Don’t wait for these before calling the meeting. It is better to call a meeting on time with an incomplete set of reports than it is to delay a meeting.