Notice Of Intention To Hold Annual General Meeting
At least three weeks before the date of the annual general meeting of your Body Corporate owners will receive from the Body Corporate a formal notice giving the time, date and venue for the meeting and asking owners to nominate owners for the position of the Chairperson of the Body Corporate and committee members. Owners will also be asked to nominate items of general business and proposed resolutions they would like the Body Corporate to consider at the annual general meeting.
Agenda For The Annual General Meeting
At least two weeks before the date of the Annual General Meeting the Body Corporate will send to each owner the agenda; a proxy form, a postal voting form, the annual Financial Statements, an audit certificate, competitive insurance quotations,a proposed budget and any other relevant documents such as a building manager’s or committee report.
Each meeting of your Body Corporate can only pass valid resolutions if it has a quorum which is defined under the Unit Titles Act 2010 as being 25% of principal units. Any owner who has not paid any part of the Body Corporate levy or other amounts due for their unit to the Body Corporate is not allowed to vote and does not form part of the calculation to determine the quorum.
If you cannot attend the annual general meeting it is important that you complete and return the proxy form so that you are represented.
Postal Voting Form
This form will carry details of the resolutions to be considered at the annual general meeting with an invitation to record your vote for or against any motion or to abstain from voting on a particular motion. This enables you to be represented on the issues being considered at the annual general meeting without being present or appointing a prox
Agenda items that are discussed at an AGM include: the appointment of the Chairperson of teh Body Corporate and the Committee; the Body Corporate’s Financial Statements; its audit procedure; the renewal of the Body Corporate’s insurance policy; security; maintenance issues; and a budget of projected expenditure for the next 12 months upon which the levies for the next year are based.
The right of an owner to vote at a Body Corporate meeting and the method of voting are prescribed in the Unit Titles Regulations 2011. Any vote to be cast at a meeting of the Body Corporate may be exercised by the owner in person, by postal vote or by proxy. All proxies must be appointed in writing in the prescribed form. The majority of resolutions are passed by a simple majority (i.e. over 50%) of eligible voters although some decisions require a 75% majority to pass (as a special resolution).
The legislation sets out two alternative means of voting. The first is that the owner of each principal unit has one vote. Alternatively, should any owner request that the vote be on the basis of a poll, the vote is based on the Ownership Interest of the principal units and accessory units owned by each owner. This means that an owner of a unit which has a higher Ownership Interest (which is the relative value of one unit compared to all other units in the development) than another unit has a vote which carries more value that the unit with a lower Ownership Interest. There are also special provisions which apply when a Body Corporate wishes to vote on a resolution that requires a unanimous decision.
Renewal Of Insurance
Several months before the AGM Strata will instruct a registered valuer to prepare a reinstatement insurance valuation of all the units and common property in the Body Corporate. On receipt of the valuation Strata forwards it to an independent insurance broker to obtain competitive quotes for the renewal of the Body Corporate’s principal insurance policy. The quotes are presented to the annual general meeting to enable owners to decide which insurance quotation to accept.
All maintenance thought to be required by the Body Corporate during the next year will be discussed at the annual general meeting so that a realistic sum can be budgeted for the Body Corporate’s maintenance and Long Term Maintenance Fund or Optional Contingency Fund. Maintenance may include repainting the exterior of the units, replacing signs or re-concreting a driveway. If your Body Corporate is a multi-level building the maintenance discussion may include the need to upgrade the building’s security or fire protection system. There is a requirement under the Unit Titles Act 2010 to have a Long Term Maintenance Plan and a method of funding the plan.
After discussing the Financial Statements for the last financial year and considering any maintenance issues, proprietors will consider those items of expenditure that need to be included in the Body Corporate’s budget for the next 12 months. Strata will provide all owners at the meeting with data showing the previous year’s budget, actual expenditure, and a proposed budget for the forthcoming year. Owners discuss the various items of proposed expenditure and decide on a budget for the Body Corporate for its next year. The timing of payment of the levies to fund the budget is also discussed and agreed by the Body Corporate.
This is the last item on the agenda and provides an opportunity for owners to discuss any other issues of concern. Motions submitted to a general meeting must be written in the agenda so as to ensure all owners know the subject matter to be raised.
Minutes Of The Annual General Meeting
After the annual general meeting Strata prepares the minutes of the meeting which are sent to all owners with an invoice for the annual levy for their unit and any other documentations required to be provided to support the minutes. The levy invoice is a bill to each owner each for their share of the Body Corporate’s budget. Your levy must be paid by the due date so that the Body Corporate can pay its creditors. The Body Corporate’s insurance premium, valuation fee, and administration costs are paid upon receipt of levies. Throughout the remainder of the Body Corporate’s year, invoices for items such as common area electricity, lawn mowing, water and wastewater charges are paid as they fall due.