In New South Wales (NSW), strata schemes operate under the Strata Schemes Management Act 2015, which sets out the legal requirements for strata management, including the need for an Annual General Meeting (AGM). An AGM is an essential part of managing a strata scheme, ensuring that lot owners stay informed about the financial, administrative, and operational aspects of the property.

What is an Annual General Meeting (AGM)?

An AGM is a formal meeting held by the owners corporation, which consists of all the property owners within a strata scheme. During the AGM, owners review the strata scheme’s financial situation, discuss important matters, vote on key issues, and make decisions affecting the management and maintenance of the property. The AGM provides an opportunity for lot owners to raise concerns, discuss the budget for the upcoming year, and elect members to the strata committee.

When Must an AGM Be Held?

Under the Strata Schemes Management Act 2015, an owners corporation is required to hold an AGM once every financial year of that owners corporation. The financial year for most strata schemes may not always align with the Australian financial year 1st July to 30th June. In many cases, each individual strata scheme may have its own financial year; for example, it could run from 1st January to 31st December.

Why is the AGM Important?

The AGM plays a crucial role in the governance and management of a strata scheme. It ensures transparency, accountability, and compliance with legal requirements. Key agenda items typically addressed during the AGM include, but are not limited to:

Financial Reporting: Evaluating the financial records, setting budgets, and determining levy contributions for the year ahead.

Insurance Coverage: Confirming that the building has the necessary insurance in place, as mandated by law.

Strata Committee Elections: Choosing new members or reappointing existing ones to the strata committee.

Maintenance and Capital Projects: Planning future maintenance work, repairs, and upgrades to shared areas.

By-Laws and Regulations: Reviewing and deciding on any proposed changes to the rules governing the strata scheme.

Failure to hold an AGM as required by the strata schemes management act 2015 may result in penalties and lead to governance issues within the strata scheme. For more details on the items that must be included in each Annual General Meeting, please refer to the Strata Schemes Management Act 2015 – click below

Strata Schemes Management Act 2015

Who is Responsible for Organising the AGM?

The owners corporation is responsible for ensuring that the AGM is held within the legal time frame. Typically, the strata managing agent will assist in organising the meeting, preparing the agenda, and issuing the notice of the AGM to all lot owners. The notice must be provided at least fourteen (14) days before the meeting and should include, but is not limited to, the agenda, motions to be considered, and relevant financial documents.

What Happens if the AGM is Not Held?

If an owners corporation fails to hold an AGM within the required time frame, it may be in breach of the Strata Schemes Management Act 2015. This could result in disputes among owners, a lack of transparency in financial matters, and missed opportunities for maintenance and improvements. In some cases, the NSW Civil and Administrative Tribunal (NCAT) may intervene to order that an AGM be held.

Looking for Assistance with Your AGM?

If you’re an owners corporation looking for a strata management company that understands the intricacies of strata management in NSW, Keen Strata is here for you. Contact us today to find out how we can streamline your strata management and ensure your AGM runs smoothly.