Question: If an AGM fails to achieve a quorum and is reconvened, how does this affect the closing date for voting?
Our large body corporate’s AGM is soon. We have many overseas non-resident owners. We usually have around five per cent of eligible owners voting on motions and committee elections. The AGM fails to reach a quorum and is reconvened.
How does this affect the closing date for electronic, proxy and in-person voting?
Answer: The closing date for vote submissions is the same closing date as your AGM, plus seven days.
If there is no quorum at a general meeting of a body corporate, the meeting must be adjourned to be held at the same place, on the same day and at the same time, one week later.
Voting is extended by the same period, so the closing date for vote submissions is the same closing date as your AGM, plus seven days.
People can vote in-person by attending the adjourned meeting. They also have the additional seven days to submit electronic or postal votes.
Unfortunately, it is a reality that some schemes rarely get a quorum – committee members and other owners familiar with these circumstances often determine to only show up to the adjourned meeting.
As a body corporate, you can vote to lower your quorum size to ten per cent. This motion needs to be passed at a general meeting. If you haven’t done so, we recommend you look at this change.
Still, you indicate you only get five per cent. You may need to look at alternatives if you want to increase numbers. Writing to owners throughout the year or before the meeting may be a good way to build engagement. Even if you are only pointing out that it costs the body corporate more to hold adjourned meetings, this may bring in some votes.
On a wider level, this may be an issue that legislators must consider. The 10 per cent quorum was only introduced a couple of years ago, and as a manager, we see it has successfully reduced the number of adjourned AGMs. A better alternative may have been to adopt the NSW system whereby if a quorum is not achieved at the start of a meeting, one can be declared by the people present after waiting 30 minutes to see who turns up. This, at least, lets the meeting proceed with the people who want to be there. Having used both systems, I can say the NSW one is better.
This post appears in the March 2024 edition of The QLD Strata Magazine.
William Marquand
Tower Body Corporate
E: willmarquand@towerbodycorporate.com.au
P: 07 5609 4924
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