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Hello All,
About to have our next AGM and will not be able to get through all our approved agenda items because we basically ran out of money.
I nevertheless want to action these outstanding items in the coming year and want to know the proper procedure. Do we need to add these as new motions to the AGM, and vote on these again? Seems like a pain, and there is the risk it gets declined this time around.
One of the standard agenda items is to approve the minutes of the last AGM as true and correct. Can we do this given we have not actioned all approved agenda items before the upcoming AGM?
How do we note that we did not action all approved AGM items in that year, to keep a record of this fact. I like a paper trail as I think our strata manager is either too busy or incompetent, or both.
Thanking everyone in advance for their thoughts.
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About to have our next AGM and will not be able to get through all our approved agenda items because we basically ran out of money.
Not sure what this means. Did you run out of money needed to action the items approved at the last AGM?
One of the standard agenda items is to approve the minutes of the last AGM as true and correct. Can we do this given we have not actioned all approved agenda items before the upcoming AGM?
The approval of the agenda items is a statement of intent. The fact that you ran out of money doesn’t affect the fact that you made the decisions. The minutes should stand unless they report something that wasn’t discussed or agreed.
Meanwhile, add those missed items to the new agenda and ask that the budget be adjusted to accommodate them.
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So approval of an agenda item is intent and not implementation? If we have a relaxed EC and intent is all that’s ever realised why have motions for action if there is no penalty for follow-through?
You have a record of what was intended and not actioned. To avoid the constant roll-over, propose a motion to the agenda that asks the strata committee chair and treasurer to outline their plan for fulfilling the commitments made at the last AGM – including necessary amendments to the budget – or explain why they will not be done despite their being the expressed wishes of the majority of owners.
The penalty for lack of follow-through is that you elect different people on to your committee who will get things done.
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See section 81 of the Strata Schemes Management Act. (4) If the owners corporation is subsequently faced with other expenses it cannot at once meet from either fund, it must levy on each owner of a lot in the strata scheme a contribution to the administrative fund or capital works fund, determined at a general meeting of the owners corporation, in order to meet the expenses.”
Note the word “must” – if the OC lacks money to carry out its duties, as approved at a general meeting, then the OC must raise a special levy to fund them.
So the AGM agenda should have either a motion to raise the regular levies to meet those expenses, or alternatively or additionally, have a motion to raise a special levy to fund the unexpected costs.
If the owners refuse to fund them, by voting down the motion, then you (or other owners) can apply for an Order at NCAT to make this happen.You need to be mindful of the intent of the motions.
If it’s to improve the common property, then it’s purely optional according to the act. Yes there can be a motion to do something but that’s just an agreement between the owners
If the motion is to repair common property, then according to the act, it’s a non negotiable duty of the committee and OC. In that case a special levy needs to be raised.
If the owners are reluctant to do so, take the next steps which are mediation through fair trading and then a visit to NCAT.