Understanding the Annual General Meeting (AGM): What Owners and Trustees Need to Know

The Annual General Meeting (AGM) is a pivotal event in the governance of any sectional title scheme. It is not just a procedural requirement under the Sectional Titles Schemes Management Act (STSMA), but an essential platform for communication, decision-making, and accountability. At Status Mark, we assist sectional title schemes in preparing for and managing AGMs to ensure they are conducted in a compliant and efficient manner.

Why the AGM Matters

The AGM is where owners get to exercise their democratic rights, review the financial health of the scheme, vote on important matters, and hold trustees accountable. It is an opportunity for trustees to present their annual reports, table the budget, and engage directly with owners on issues affecting the community. The AGM ensures that sectional title schemes are not only run efficiently, but also fairly.

Key Agenda Items

Every AGM must follow a legally prescribed format, which includes several essential agenda items:

• Presentation and approval of the audited financial statements for the past financial year.
• Tabling and approval of the annual budget for the coming year, which forms the basis for levies.
• Appointment of trustees, where owners vote to elect individuals responsible for managing the scheme.
• Appointment of the auditor or accounting officer.
• Consideration of the scheme’s insurance and confirmation that coverage is adequate.
• Discussion of any maintenance plans and review of the reserve fund.

These decisions are crucial for the operational and financial health of the scheme, and professional guidance can ensure the correct documentation is presented and all necessary steps are followed.

Owner Participation and Voting Rights

All registered owners are entitled to attend the AGM, participate in discussions, and vote on resolutions. Voting power is typically based on participation quotas (PQs), and a quorum must be established for the meeting to proceed.

It is essential that owners understand their rights and responsibilities during the AGM. Decisions made at these meetings can significantly affect the management of the scheme, levy amounts, and the value of the property. Having structured support in place helps ensure the process is well-communicated and inclusive.

Common Challenges and How to Address Them

AGMs can sometimes be disrupted by poor communication, low attendance, disputes, or confusion around governance procedures. With the right preparation and support, these challenges can be mitigated. Assistance with compiling documentation, managing notices, and facilitating discussions can help AGMs run smoothly and productively.

How Status Mark Assists with AGMs

At Status Mark, we assist sectional title schemes with every stage of the AGM process. From helping trustees prepare the necessary reports and financials to guiding them through compliance with legal requirements, we ensure AGMs are conducted professionally and transparently. Our support helps foster trust among owners and contributes to effective scheme governance.

By working with Status Mark, your scheme can host AGMs that are more than just a legal obligation—they become a meaningful opportunity for collaboration, communication, and progress. Contact us to learn more about how we can assist with your next AGM and support the overall management of your sectional title scheme.