What Happens at a Strata Annual General Meeting?

Have you ever received a notice for a Strata Annual General Meeting (AGM) and thought it wasn’t relevant to you? Did you know that by actively participating in the AGM, your voice and vote can influence important decisions about the future of your strata property?

During the AGM, all owners come together to talk about the building’s finances, maintenance, and important decisions that impact everyone. Think of it as a health check for your property, and your input is valuable!

So, keep reading to know more about what happens at a Strata Annual General Meeting.

What is the purpose of a strata Annual General Meeting?

The Owners Corporation Act 2006 Section 69 requires that an AGM is mandatory if the owners corporation conducts any financial transactions, and these meetings must be held at least once every 15 months and attended by the owners, Committee members, and strata managers.

This meeting provides a space to fulfill legal requirements such as presenting financial statements, electing the Committee, and ensuring transparency and accountability within the strata corporation.

Participating in these kinds of meetings is equally important so that the owners can engage in decision-making that impacts their property and supports a well-governed community.

What is discussed at a strata AGM?

At a Strata AGM, every issue concerning your strata property takes center stage. As an owner or part of the  OC Committee, it is the key time to discuss property-related issues, and vote in the Committee and office bearers for the year ahead. Section 71 of the OC Act outlines the agenda for annual general meeting.

During the meeting, the following must be covered:

• A review of the owners corporation’s income and expenditure over the past financial year
• An overview of its assets and liabilities at the close of the last financial year
• Updates on maintenance work and the maintenance plan
• Reports from both the Committee and the owners corporation manager
• Any complaints or new issues that have arisen

The AGM also serves to:

• Appoint a new Committee
• Discuss and approve the maintenance program and budget for the coming year

Lot owners must receive the notice, agenda, financial statements, budget, and minutes from the previous meeting at least 14 days before the AGM.

The AGM can be quite packed, with lots of reports and items to get through. Some issues may be deferred to a Special General Meeting if needed.

Presentation and approval of financial statements

Now that you understand the purpose of the AGM, let’s dissect into one of the most critical parts: the financial health of your strata property. It is important to keep track of the financial health of your building. All the financial records and statements must be presented by the treasurer or the strata manager so you can understand how funds have been used.

Some have an income section that outlines all funds received, such as owner contributions, rental income (if applicable), and other revenue sources. Expenditure details the OC’s costs, including maintenance, repairs, insurance premiums, utilities, and management fees. The budget for the upcoming year is also discussed at this stage. Additionally, the financial statements will show the balances of the Sinking Fund and Reserve Fund, which are crucial for covering future major repairs and unexpected expenses.

When the financial statements are presented, owners can ask questions, express concerns, and seek clarification on budget allocations to ensure sufficient funds are reserved for maintenance. Reviewing and approving these financial statements is crucial for the financial health of the strata scheme, as it promotes transparency, accountability, and effective future planning.

For instance, in the AGM minutes, you might want to ask why the entire budget of $145,000 is designated for “Administration” without any funds set aside for “Maintenance/Sinking.” Is this an oversight? Does it imply that no maintenance is planned for the year? Or does “Administration” include maintenance costs? Addressing these questions helps everyone grasp the financial strategy for the upcoming year.

Review of strata maintenance plans and projects

Remember the leaky roof, the unreliable lift, and the peeling paint in the hallway? Your Strata AGM is the opportunity to tackle those pesky maintenance concerns and ensure your building stays in great shape.

The above-given example of how water leaks affect the ground floor units was discussed during the AGM. It was reported that experts from Buildcheck and Watertite had provided differing opinions on the cause and necessary action to resolve the issue. They decided to hold off on further actions until Buildcheck reviews the Watertite work in Lot 3.

After the report is received, the newly elected Committee will convene to go over the findings and decide on the next steps, which may include additional repairs or assessments if necessary.

During the AGM, the Strata Committee or manager will typically guide you through the following:

• Completed Projects: Be informed about recent maintenance successes and celebrate those completed repairs and renovations.
• Ongoing Works: Keep updated on any ongoing maintenance projects, including timelines and progress reports.
• Planned Maintenance: Check the future discussions on planned maintenance activities, preventative measures, and long-term upgrades.

So make sure to raise concerns, seek information, and contribute to discussions, you play an active role in ensuring the upkeep and longevity of your building.

Election of the strata Committee members

At the AGM, owners elect or re-elect members of the Strata Committee who will represent them and manage the affairs of the Owners Corporation. Each lot owner typically has one vote for each position, and the voting can take place either by a show of hands or through a secret ballot, depending on the OC rules.

Remember that it is essential to choose capable and trustworthy individuals for key positions like chairperson, secretary, and treasurer, as they are responsible for making decisions that influence the building’s maintenance, finances, and overall operations.

For example, when a new treasurer is chosen, owners should ensure that this person is capable of managing financial records, as they will oversee the budget and financial statements. Selecting the right people is crucial for the effective functioning of the strata scheme and for representing the interests of all owners.

If your Committee members feel that your AGMs lack structure or leave key questions unresolved, you can speak to a strata management consultant here to help clarify your options and guide a transition to management that supports more effective meetings.

How to prepare for a strata AGM

Preparing for a Strata AGM is key to being actively involved and making informed decisions. Documents such as notices, the agenda, financial statements, proposed OC rules amendments, the budget, and minutes from the previous meeting are usually sent out in advance. Take the time to review these materials and familiarise yourself with the agenda. Being well-prepared ensures the meeting runs smoothly and helps make sure the decisions made reflect the interests of the whole community.

Why attending your strata AGM matters

With the knowledge you gained from this blog, the next time you receive the notice to attend Strata Annual General Meeting, you can confidently ask questions about the finances, propose a solution to that persistent leak in the roof, and even nominate yourself for the Committee. You’ll no longer be passive but rather an engaged owner contributing to the growth of your community.

If you feel your owners corporation could benefit from expert guidance in appointing the right strata manager to handle your community’s affairs, we’re here to help. Strata Management Consultants specialises in assisting owners corporations with selecting experienced, reliable managers who can effectively navigate AGMs and ensure your interests are prioritised.

Take the next step. Reach out to us today for expert advice and support in confidently managing your strata.