As an individual owner, you have full autonomy to decide how you want to maintain, manage, and even design your private property. However, in some cases, like apartment buildings, owners have shared spaces or common properties. Victoria defines common property as any part of the land, buildings and airspace that are not lost on the subdivision plan. It may include gardens, passages, walls, pathways, driveways, stairs, lifts, foyers and fences. The lot owners collectively own the common property. Because it is collectively owned, the owners must make decisions together, as it would ultimately affect everyone.
Additionally, there is also a financial factor related to the maintenance and management of these shared spaces. All these decisions, plus so much more, are discussed in an AGM. In line with that, here are the 5 reasons to attend the Annual General Meeting and deeper comprehension of it.
AGM stands for Annual General Meeting. As the name suggests, it’s a once-a-year meeting usually held every 12-15 months as per Consumer Affairs Victoria. Here, a lot of owners convene and discuss a series of topics related to shared spaces or common property. An AGM covers a whole range of topics relevant to all the lot owners and the shared spaces within the corporation.
These meetings are open to all owners or their proxies and usually start with attendance checks to see if a Quorum* is met. An AGM provides owners with the opportunity to review the financials of their Owners Corporation, set a budget for the new financial year, discuss matters relating to their property’s insurance, general repairs and maintenance items and any other general business that owners would like to raise. At this meeting, a committee and/or chairperson of the Owners Corporation is also elected. This committee and/or chairperson will represent the rest of the owners throughout the year.
Note: A Quorum is the minimum number of members needed to transact business at a meeting. The quorum for an annual general meeting is at least 50 per cent of the total votes, or if 50 per cent of the total votes are not available, then 50 per cent of the lot entitlements. But why do you need to attend an AGM, even if you have a Strata Plan to guide you?
As mentioned above, the AGMs cover topics related to the maintenance and management of your shared property. Attending an AGM is not only a terrific learning experience as a property owner, but it also provides an in-depth look into how the financials of the Owners Corporation work. Think of it as an extension of your investment in your property. You’ve already invested in your property; make sure to invest time in common property as well! Ensuring that your shared spaces are properly managed also helps secure the investment you have already made in your private property. During AGMs, Strata Plan reviews previous budgets and processes and provides guidance on how you might be able to save costs and improve efficiency.
Just because there is acommittee and Strata Plan is your Owners Corporation Manager doesn’t mean youdon’t have a say. The common properties are collectively owned by the lotowners, which means you have a say- or to be more cliché- your vote counts!
If you have concernsabout how common property or shared spaces are managed, or if you havesuggestions on how to improve how it’s managed, this is the perfect opportunityto raise them in front of your fellow owners and your Owners CorporationCommittee.
Fact: Strata Plan, yourOwners Corporation Manager- do not make these decisions. Only owners can makedecisions. The Strata Plan reviews the previous years’ financials; maintenanceitems and general business actions and provides recommendations but acts on thedecisions made by the Owners Corporation during these meetings. And thatincludes your decisions- so make sure to attend!
Say your idea to addmore plants around the pool area is something that your fellow owners agree on,then your AGM is the perfect setting to have these ideas followed up byactionable solutions. However, these ideas and decisions have financial factorsto make them happen – who will purchase the plants, how many will you get, whowill water them, maintain them, replace them if they die? All these factorsneed to be considered, and that is why it is important to attend your AnnualGeneral Meetings, so that these decisions can be finalized by the owners andacted upon by your Owners Corporation Manager.
Properties are aninvestment, and a good investment requires good maintenance. Oftentimes, ownersensure their investment in their private property is well taken care of butforget to participate in the maintenance of shared spaces. Every lot owner has a responsibility to theshared spaces, and having an active role in your Owners Corporation ensuresthat your investment is well managed.
If no one shows up toan AGM, the Strata Plan will be forced to carry over the same budget from theprevious year. If building budgets are not enough to satisfy the cost tomaintain the property, then the Owners Corporation could find itself insolventand unable to pay for routine maintenance work and upkeep. This is ultimatelyto the detriment of the owners, but if this is what is happening to your OwnersCorporation, this is an excellent opportunity for you to show up and play aleading role in making your strata community an amazing living space.
Again, your OwnersCorporation is an ecosystem- a community that interacts in a shared space.However, it doesn’t always mean that your ecosystem is working in harmony.Sure, you have Strata Plan as your Owners Corporation Manager, but like anythriving community, its members must work together too.
Meeting the othermembers of your Owners Corporation and getting to know your Owners CorporationManager can give your insight into how the property is managed in a way thatcannot be explained on paper. Developing relationships and promoting a sense ofcommunity and teamwork within your Owners Corporation ensures that yourecosystem can thrive. Not only that, but Strata Plan also strives not only tomaintain your shared spaces, we also aim to enhance LifeSpaces.
· Learn moreabout how your property is run and managed by your committee throughout theyear.
· Meet yourfellow Owners and Committee, collaboration is key!
· Build arelationship with your Manager to ensure collaborative work for the year ahead.Lot Owners are the eyes and ears of the OC and we rely on their input,especially now that our OC Managers cannot attend site as much as we would liketo due to restrictions from the Government.
· Have your sayabout issues that may be impacting your property and fellow Lot Owners.
Meeting theother members of your Owners Corporation and getting to know your OwnersCorporation Manager can give you insight into how the property is managed in away that cannot be explained in paper. So make sure you don’t miss yours! Notsure when your next AGM is?
Missed yourprevious AGM and want to know what’s been discussed?
Give us acall! (1300 278 728) or send us an email at info@strataplan.com.a
Who can attend the AGM?
All registered lot owners or members of thecommunity are welcome to attend the AGM. Their attendance is encouraged, as it allowsthem to stay involved in decision-making, receive community updates, andparticipate ins them to stay involved in decision-making, community updates,and voting on important matters within the property.
Why is it important to attend the AGM?
Attending the AGM keeps you informed about howthe property is being managed, lets you raise concerns or questions,participate in discussions, and vote on key issues like budgets, levies, andcommittee appointments that directly impact your investment or livingenvironment.
Do I have to speak or vote during the meeting?
No, speaking or voting isn’t required. You cansimply attend to listen, observe, and gain a better understanding of yourbuilding’s operations and financial matters. However, participating is a greatopportunity to make your voice heard and contribute.
What if I can't attend the AGM in person?
If you’re unable to attend, you can appoint aproxy to vote on your behalf or inquire if virtual attendance is allowed.Contact your strata manager or committee in advance to arrange alternatives andensure your voice is still represented.
Attending your Annual General Meeting is morethan just a formality, it’s a vital part of being an informed and responsibleproperty owner. It gives you the chance to help shape decisions about sharedspaces, protect your investment, and connect with fellow owners and your OwnersCorporation Manager. Even if you don’t wish to speak, your presence alonecontributes to reaching a quorum and ensuring that the Owners Corporationfunctions effectively. With AGMs now held virtually or by phone, participating hasnever been easier. Make the most of your ownership, show up, stay informed, andbe part of building a better community test
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