Question: If a committee had no AGM the previous year but continued to act as a committee, is this unlawful? Could I raise this in conciliation?
Answer: An AGM must be held each year.
As the name suggests, an annual general meeting (AGM) must be held each year. At each AGM, all committee positions become vacant and the committee for the following year elected. It can be the same set of people, but the AGM must still be held and positions declared vacant first.
If your scheme did not have an AGM and the committee simply continued on from the previous AGM, then I would struggle to see how any of that was valid. If a scheme is not holding its AGM, that suggests it is dysfunctional and may require the appointment of an administrator. In some cases, a scheme might hold its AGM ‘out of time’ (i.e., outside of the timeframe in which it is meant to be held) and they can seek an adjudicator’s order for that to occur. Usually the ‘out of time’ period is relatively small and there is a reason for it.
There is absolutely no scope for a committee to decide not to hold an AGM simply because they do not want one to be held. Decisions purportedly made by a committee where no AGM has been held, may be invalid also.
Exceptions to the AGM rules may apply for certain two-lot schemes.
This is not legal advice and is general information only.
This post appears in Strata News #647.
Chris Irons Strata Solve E: chris@stratasolve.com.au P: 0419 805 898