Annual general meetings (AGMs) can actually be held within four months of the year end and that’s what must be done at all times.
They are supposed to be held within four months of the year end – that is by the end of June for a February year-end.
It can be done.
However, so many body corporates are several months in arrears when it comes to holding their AGMs.
One reason why it’s important to hold these meetings on time is that budgets need to be set to start at the beginning of the financial year.
If implemented late, it means the increases must be effected over the balance of the year.
This could be a complicated exercise which could also prove costly to the property owners as increases meant to be spread over a 12-month period have to be squeezed into a shorter period of time.
It also means some maintenance work and other services may not be implemented on time as there will be no budget for them.
No one wants to pay a higher monthly levy no matter the circumstances.
So, to avoid any complications, simply hold the AGMs on time.
While trustees can implement a new budget with increases of up to 10 percent on the previous year, in my mind it should always be done at a special general meeting held in the last month of the year.
This is important because it gives every owner an opportunity to put their thoughts into the new budget.
It also allows for a smoother year because everything done will be agreed on initially.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.