Annual General Meeting (AGM): What It Is and Why It Matters
Ah, the Annual General Meeting or AGM if you like saving syllables and time. It’s the one time each year when owners gather, motions are debated, budgets are adopted, and someone inevitably brings up that parking issue again.
Whether you’re in a city high-rise, a cosy townhouse complex, or a sprawling community title estate, the AGM is more than just a legal hoop to jump through it’s the big decision-making day for your scheme.
Let’s break down what it is, why you should care, and how to survive (or even enjoy) it.
What Exactly Is an AGM?
In strata and community schemes, the AGM is the once-a-year, all-owners meeting required by law. Think of it as the scheme’s annual check-up it’s where you:
Review the year gone by
Plan for the year ahead
Elect your committee
Approve the budget and levies
Tick off certain statutory requirements (like insurance)
Every state and territory has slightly different rules, but the general idea is the same: owners get together (in person, online, or a mix of both) to make the big calls for the next 12 months.
Why Does It Matter?
If the AGM didn’t exist, your building would be like a ship with no captain, no map, and no budget for fuel.
Without it:
No one officially approves the spending plan
The committee can’t be properly elected
Statutory obligations (like insurance renewals) could be missed
Decisions could be challenged for not following the proper process
It’s also the one guaranteed opportunity each year for all owners to have a say even those who aren’t usually active in day-to-day matters.
The Main Ingredients of an AGM
While the exact format varies, most AGMs include the following basic items in the form of Motions:
Confirming the Previous Minutes
A quick “yes, that’s what happened last time” moment. Don’t overthink it.Reports
The committee or strata manager might present past and current financials, maintenance, completed projects, or the saga of the leaky roof.Budgets & Levies
Possibly the most “spirited” part of the meeting. Owners vote on the spending plan and how much everyone will chip in for the next year.Elections
The committee gets (re)appointed. Sometimes a calm process, sometimes a bit of a popularity contest.Insurance
By law, the scheme must renew its insurances, building, public liability, and other required cover.Other Motions
Everything from approving renovations, to changing by-laws to deciding which colour to paint the building. This is where the “interesting” debates happen.
Each state has its own list of “must-do” motions, so check your local legislation. In NSW, for example, Schedule 1 of the Strata Schemes Management Act 2015 sets them out.
How to Prepare for an AGM (Without Stressing)
For the organiser:
Set the date early: You need to give proper notice (varies by state and territory, often 7–21 days).
Draft a clear agenda: So owners know what’s coming.
Include the paperwork: Motions, budget, insurance certificates, proxy forms.
Book a venue (or Zoom link): And make sure the tech works.
For the owner:
Read the agenda: Yes, actually read it.
Decide how to vote: In person, by proxy, or pre-meeting.
Ask questions beforehand: It saves time during the meeting.
Bring: A sense of humour, it helps.
Myths About AGMs
“They take forever.”
They can but with a good agenda and a good chairperson, they don’t have to. A well-run meaty AGM can be done in under an hour.
“I don’t need to attend; the committee will handle it.”
True, they can but that means you’re letting others decide how your money is spent and what rules you live under.
“I can bring up anything I want in General Business.”
Not quite. Some decisions can’t be voted on unless they’re on the agenda. General Business is often just for discussion.
Tips for Surviving (and Thriving) at an AGM
Bring snacks: Hungry people don’t make good decisions.
Stay on topic: This isn’t the time to revisit every dispute from 10 years ago.
Don’t be afraid to speak up: But be concise.
Volunteer (wisely): Committees need people but know what’s involved before raising your hand.
Take notes: Even if minutes will be sent later, jotting down key points helps
Why Your Vote Counts
In a small scheme, one vote can change everything from whether a renovation goes ahead to how much your levies increase. In larger schemes, it’s still your chance to influence decisions that affect your living environment and property value.
If you don’t participate, you’re letting others make those calls for you and you may not like the results.
The AGM in 5 quick points
Annual legal requirement One meeting a year to decide key matters.
Who attends? All owners (plus tenants as observers in some states), the committee, and the strata manager (if one is appointed).
What’s decided? Budgets, levies, elections, insurance, major works, and other motions.
Why bother? It’s your chance to have a say in how your building is run.
Outcome? A set of official decisions that shape the year ahead.
Final Thought
The AGM might sound formal (and it is), but it’s also the one time each year when every owner has equal say in the direction of the scheme.
Show up, read the agenda, cast your vote, and maybe even enjoy the process. Who knows, you might walk away feeling oddly satisfied that democracy is alive and well in your little corner of the property world.
And remember: an AGM without drama is possible… but no guarantees.
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction.