An AGM, in terms of sectional title, is an annual meeting of the owners and trustees. The AGM is held to discuss such things as the maintenance, the financials of the complex, upcoming projects, etc. The managing agents attend AGMs to assist the trustees and chair in running the meeting and provide advise and guidance where needed in terms of sectional title.

At least 14 days notice must be given to all those entitled to vote which is usually owners. The AGM must be held within four 4 months of the end of the financial year end. It must be held within the magisterial district of where the scheme is situated, which means at the complex. The AGM is therefore often held on the complex premises itself but can be held elsewhere if need be by special resolution of the members of the body corporate.

Once a time and place is decided, there are quorum requirements that need to be met in order for the AGM to proceed. Quorum is essentially the amount of entitled voters such as owners, shareholders, etc, that need to be present in order for a meeting to proceed. In terms of sectional title, the amount or percentage of voters required is dependent on how many units there are in the scheme.

• If there are 10 units or less: 50% of the owners, present or represented, constitute a quorum
• If there are between 11 and 49 units: 35% of the owners, present or represented, constitute a quorum; and
• If there are 50 or more units: 20% of the owners, present or represented, constitute a quorum.

If quorum is not met after half an hour of the AGM scheduled starting time, then the meeting is adjourned and must take place same place, same time, and same day of the next week. If quorum is not met again at the adjourned meeting after half an hour, then the meeting commences anyway and the voters and owners present form the quorum and are entitled to vote at that meeting.

AGM gives all owners and trustees the opportunity to discuss important issues relating to the operation and effective management of a sectional title scheme.

What needs to be included in an AGM agenda? The following is list of what should be on there:

• Financial statements and trustee’s report (signed by the chairman)
• Approval of income and expenditure statements and determination of monthly levy
• Approval of insurance replacements values
• Appointment of an auditor or accounting officer
• Establishing the number of trustees
• The election of trustees
• Any special business as set out in the notice
• Imposing of directions and restrictions
• Choosing the domicilium of the body corporate

Note that the act doesn’t make provision for any item described as “general” on the agenda. If there is a specific topic that must be discussed, it should be raised under “special business” on the agenda Procedures in the AGM

The chairman chairs the meeting. If the chairman is unwilling or cannot act in the meeting, the owners at the meeting should elect a chairman from the owners.

Please note that a person can only carry two proxies.

• Proper notice should have been given to the owners and the meeting can only be proceeded if the quorum is present.
• It is the chairman’s duty to read and explain all of the points on the agenda.
• When there is an issue to vote on, the chairman must put the matter to vote and the result of the vote should be announced properly.
• When the meeting is over the chairman will adjourn the meeting.

Note that when the majority of the owners wants to adjourn the meeting, the chairman is obligated to adjourn the meeting. If the chairman adjourns the meeting and the majority of owners disagrees, another chairman can be elected for that specific meeting.