Question: Our BCM require 3 months to prepare for an AGM. All motions must be submitted before this cut off date. How can we ensure motions are relevant if quotes for maintenance are only valid for 30 days?
Our BCM has stated that they require at least 3 months to prepare for an AGM, and have said that all motions must be submitted before the cut off date. How do we comply when quotes for any big maintenance issues in the complex are usually only valid for 30 days?
Also, our Budget meeting is scheduled for mid-March. Shouldn’t agenda and motions be submitted just following the budget meeting? Can we put forward a motion to alter the meeting dates appropriate to the issues within our complex?
Answer: Submit the outdated quotation and include provision in the motion in the event that the quotation increases at the time the motion is approved.
Each body corporate has its own financial year (distinct from the usual June/July financial years). This date is important for submitting motions and the timing of the AGM.
The legislation provides that:
In section 83 of the Standard Module:
An annual general meeting, other than the first annual general meeting, must be called and held within 3 months after the end of each of the community titles scheme’s financial years.
In section 98(6) of the Standard Module:
A motion submitted by a member of the body corporate may be included on the agenda for an annual general meeting only if the secretary receives the motion before the end of the body corporate’s financial year immediately preceding the meeting.
The 3 month period is usually used to its fullest extent as it does take time to prepare the AGM materials. Often this is because the manager is relying on third parties (such as accountants) to produce the required financial reports).
Although a lot owners submitted motion is restricted by the body corporate’s financial year date, the committee has the ability to include motions on the agenda up until the meeting notice is finalised. This may assist with the timing of quotes issue.
The timing issue of quotes has always been a difficult one. In most cases the best approach will be to submit the outdated quotation and include provision in the motion in the event that the quotation increases at the time the motion is approved.
This post appears in Strata News #542.
Todd Garsden Mahoneys E: tgarsden@mahoneys.com.au P: 07 3007 3753