25 Jun Adjudicators Order: What is the process for calling an Extraordinary General Meeting (EGM)
What is the process for calling an Extraordinary General Meeting (EGM)
There is a requirement under the Body Corporate and Community Management Act 1997 and the Regulation Modules for a Body Corporate to hold an Annual General Meeting (AGM) within 3 months of the end of the financial year e.g. if the financial year end is the 31st January, the AGM must be held by the end of April.
At the Annual General Meeting motions are considered and voted on by owners including statutory motions around budgets, financials and insurance etc. and it is at this meeting that other motions can be proposed and considered around building maintenance and expenditure that is above what the Committee is authorised to approve.
However, what happens if quotations for works are obtained and the AGM is not due to be held for a while?
The Body Corporate has the ability to call an Extraordinary General Meeting (EGM), provided that it has been correctly requested. Section 67 of the Body Corporate and Community Management (Standard Module) Regulation 2008 states:
1. An extraordinary general meeting (a requested extraordinary general meeting) of the body corporate must be called if a notice asking for an extraordinary general meeting to consider and decide motions proposed in the notice is.
a. Signed by or for the owners of at least 25% of all lots included in the community titles scheme; and
b. Given to the secretary, or in the secretary’s absence, the chairperson or, if the committee has not yet been chosen, given to the original owner.
A resolution passed by the Committee can also be done to call an Extraordinary General Meeting.
There is a requirement then, once the notice has been given, for the requested extraordinary general meeting to be called within 14 days and must be held within 6 weeks.
The adjudicators order, this month, looks at this process as there was a dispute that the notice of the requested extraordinary general meeting was not correct and had not been signed by or for owners of 25% of all lots in the scheme and as the meeting had been held, the request to the Commissioners Office was to declare the meeting invalid and the previous Committee be reinstated.
The argument by the applicant was that the person that submitted the notice requesting the meeting was “not the lawful representative” of a number of the lots as a company nominee form was on file appointing another representative of the lot and another lot owed a debt.
The adjudicator noted that an Authority to Act had been sighted which was signed by the owner of the lots and that section 65 of the Body Corporate and Community Management (Accommodation Module) Regulation 2008 – under which this particular scheme is managed – does not expressly state that only a company nominee recorded on the roll could sign the request for the corporate owner. The adjudicator also noted that this same section does not prevent an owner who owes a body corporate debt from signing the request.
Based on the information contained in the application and from the submissions made by other owners, the adjudicator found that the applicant had not shown that the representative that submitted the notice could not sign the request on behalf of the corporate owner and therefore could not establish that the notice failed to meet the requirement for requesting an extraordinary general meeting and dismissed the application.
It is important to note, also, that should the requested extraordinary general meeting not be called within the 14 day timeframe, the owners of the lots for whom the original request was signed may, in writing, request a committee member, other than the committee member to whom the original request was given, to call the meeting – they then must call the requested extraordinary general meeting within 14 days after the written request is given to the member.
A full copy of the order can be read: http://www8.austlii.edu.au/cgi-bin/viewdoc/au/cases/qld/QBCCMCmr/2019/273.html and further information on Calling Extraordinary General Meetings can be found by visiting the Office of the Commissioner for Body Corporate website – https://www.qld.gov.au/law/housing-and-neighbours/body-corporate/committees-meetings/general-meetings/extraordinary