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An Annual General Meeting (AGM) is one of the most important events in a body corporate calendar. It is the primary forum where owners make key decisions about finances, insurance, governance and the direction of the scheme for the year ahead.
AGMs are regulated by the Body Corporate and Community Management Act 1997 (BCCM Act) and the applicable regulation module, most commonly the Standard Module or Accommodation Module. These laws set out specific requirements for how meetings are called, what must appear on the agenda and how decisions are made.
Because only matters properly listed on the agenda can be voted on, getting the agenda right is essential to ensuring the meeting runs smoothly and resolutions are legally valid.
Giving Notice to Owners
Every body corporate must hold an AGM each year. The AGM must be held within three months after the end of the scheme’s financial year and notice, and, along with supplying the required documentation, all lot owners must be given at least 7 days notice before the meeting.
The notice must be issued to each lot owner and, where relevant, first mortgagees. It can be delivered by post, by hand, or in another way authorised by the by-laws. The notice is not just a formality, it ensures owners who cannot attend in person still have a proper opportunity to participate through voting papers or proxies.
The notice of AGM must clearly state the date, time and location of the meeting and include a complete agenda and voting papers for every motion to be considered.
If a motion is not on the agenda and stated on the voting paper, it generally cannot be voted on at the meeting.
What Must Be Included on an AGM Agenda
Legislation requires every AGM agenda to include certain statutory motions. Even schemes with very few issues must still deal with these matters each year.
An AGM agenda must include a motion to confirm the minutes of the previous general meeting. It must also provide for the presentation of the financial accounts for the previous financial year and deal with whether those accounts are to be audited for the coming year. Where an audit is required or proposed, a motion to appoint an auditor must be included.
The agenda must include motions to adopt the administrative fund and sinking fund budgets for the next financial year and to fix the contributions (levies) payable by lot owners. Owners are also required to review each insurance policy held by the body corporate.
Another essential agenda item is the election of the committee. At the conclusion of the AGM, the existing committee is dismissed and a new committee is elected for the next year.
In addition to statutory motions, the agenda must include any motions submitted by the committee or properly submitted by lot owners. For an AGM, an owner’s motion must generally be received by the secretary before the end of the financial year immediately preceding the meeting.
Supporting Documents and Explanatory Schedules
The AGM notice must be accompanied by key documents to allow owners to make informed decisions. This includes financial statements, proposed budgets, voting papers, proxy forms and, where required, an explanatory schedule.
An explanatory schedule allows up to 300 words explaining a motion and is particularly important for budget motions, motions with alternatives and motions proposing significant changes, such as changing regulation modules. Where a motion with alternatives is included, the agenda and voting paper must clearly set out how owners are to vote.
For AGMs, the notice must also include a copy of the Register of Reserved Issues.
Location of the AGM
A general meeting cannot be held more than 15 kilometres from the scheme’s property if owners representing at least 25% of the voting entitlements object in writing before the meeting. This ensures meetings remain reasonably accessible to owners.
General Business on the Agenda
Many AGMs include an item for general business. While legislation does not prohibit general discussion, it is important to understand its limits.
General business can be used to raise issues, share information or ask questions, but it cannot result in a decision that binds the body corporate unless the matter has been properly included as a motion on the agenda and voting paper.
This distinction is crucial, particularly at AGMs where owners may wish to raise concerns on the day that were not submitted in advance.
Chairing the Meeting and Points of Order
The agenda sets the framework for the meeting, but the chairperson is responsible for its conduct.
The chairperson must rule motions out of order if they conflict with the legislation or by-laws, are unlawful or unenforceable, or were not included on the agenda. When this happens, the chairperson must give reasons, which must be recorded in the minutes.
Procedural motions, such as limiting debate or managing how the meeting is run, may be introduced during the meeting and can take precedence over other business. These help keep AGMs productive, particularly where agendas are full or discussions become lengthy.
Questions from the Floor
It is generally accepted that owners should be given a reasonable opportunity to ask questions and discuss agenda items. The chairperson controls this process and should ensure questions remain relevant to the business listed on the agenda and that the meeting progresses in an orderly way.
Questions should be directed through the chairperson, who may invite others, including committee members or the body corporate manager, to respond.
The Role of the Body Corporate Manager
Body corporate managers play a key supporting role in AGMs. While they do not control the meeting unless properly authorised, they assist the chairperson by providing procedural guidance and ensuring compliance with the BCCM Act and regulation modules.
Ultimately, however, responsibility for decisions about the conduct of the meeting rests with the chairperson.
Why a Well-Prepared Agenda Matters
A well-structured AGM agenda is more than a compliance requirement. It gives owners clarity, ensures decisions are valid, and helps prevent disputes. By clearly setting out what will be discussed and decided, circulating documents in advance and adhering to legislative requirements, bodies corporate can run AGMs that are efficient, transparent and genuinely useful for everyone involved.
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