“When an annual general meeting (AGM) or special general meeting (SGM) is held in a sectional title scheme, there are certain guidelines that must be followed in order to meet the criteria as set out in the Sectional Title Schemes Management Act, which differ from the way the quorum was calculated in the past”, says Michael Bauer, general manager of property management company IHFM.
“No business can be dealt with by the members of a sectional title scheme at either type of meeting unless a quorum is present, whether actually present or represented by a proxy, and under the new Act no person may hold more than two proxies”, said Bauer.
Regulation 19 states that the quorum for either AGM or SGM is calculated on the number of primary sections owned within the scheme. If the scheme has fewer than four primary sections or members then the quorum needed will be two thirds of the value of the votes of all the members. If the scheme has more than four primary sections, then the quorum requirement is one third of the total value of the members in the scheme.
There must be at least two people present at the meeting, unless all the sections are registered to one person and the developer’s or body corporate’s value cannot be taken into account when establishing whether a quorum is present.
If there isn’t a quorum present after 30 minutes of the indicated time of the start of the meeting, then it would be adjourned to the same time and day of the following week, at the same venue. If a quorum is still not reached within 30 minutes at the following meeting, the meeting goes ahead regardless with the members who are in attendance.
There is one exception to the above, and that is if there is a special or unanimous resolution tabled for approval at the meeting in question. The required quorum is 33.3% in case of a special resolution and 80% in case of a unanimous resolution, calculated in number (actual number of members) and value of the votes (PQ) of all the members of the body corporate.
“It’s often very difficult to get members to attend meetings in sectional title schemes, and even though we always encourage owners to play an active role in the management, it is often left to the trustees to make major decisions. If owners oppose something, they do have the power to try and challenge or prevent it from happening,” said Bauer.