PART 1 – HOW DOES AN OC EXERCISE THEIR FUNCTIONS AND POWERS?

 

Annual General Meetings

An owners’ corporation must hold a meeting of all lot owners if it receives or pays out money during the financial year. This is called the Annual General Meeting.

The Annual General Meeting is the main opportunity for lot owners to discuss issues concerning their property and elect the committee and office bearers for the next year.

Written notice of an Annual General Meeting must be provided to lot owners at least 14 days before the meeting.

The time between the Annual General Meetings must not exceed 15 months.

Agenda

The lot owners, committee members and manager must organise an agenda that identifies items for discussion. The agenda will typically cover the following topics:

  • election of a committee (mandatory if there are 13 or more lots)
  • election of chairperson and secretary
  • appointment of registered manager
  • instruments of delegation for the manager, committee, chairperson and secretary if required
  • registration of the owners’ corporation for taxation purposes.
  • notification to Land Use Victoria of changes to the owners’ corporation contact details
  • provision and details of insurance
  • additional insurance; for example, to protect office bearers
  • setting up a bank account
  • method of keeping books and records
  • building audit for the purposes of the Building Regulations 2018, including cooling tower registration if required
  • risk assessment for occupational health and safety purposes
  • budget for the next 12 months. The budget is usually for a financial year
  • consideration of financial statements
  • the details of fees
  • rules, including the owners’ corporation’s process for resolving disputes
  • consideration of reports.

Resolutions

Different types of resolutions require different percentages of votes to pass. These include:

  • ordinary resolutions, which require the agreement of more than 50 per cent of lot owners
  • special resolutions, which require the agreement of at least 75 per cent of lot owners
  • unanimous resolutions, which require agreement from all lot owners.

Delegations

Delegation of powers enable a chairperson, secretary, manager or committee to make decisions on behalf of the owners’ corporation and carry out day-to-day tasks without having to call a general meeting.

Some powers cannot be delegated, including all matters requiring a unanimous resolution, a special resolution or an ordinary resolution at a general meeting.

Minutes of Meetings

The owners’ corporation must arrange for minutes of all meetings to be kept and available for inspection.

Proxies

If a lot owner cannot attend a meeting, another person can be appointed as a ‘proxy’ to represent and vote on behalf of the lot owner. It is illegal for someone to demand or require another person to give a proxy.

Powers of Attorney

A person acting under a power of attorney for a lot owner may vote on the lot owner’s behalf at a general meeting or ballot. An attorney can only act for more than one lot if they are a member of the lot owner’s family. It is illegal for someone to demand or require another person to give a power of attorney.

Special General Meetings

All meetings other than Annual General Meetings are called special general meetings. These can be convened by the owners corporation manager, chairperson or secretary, or a lot owner nominated by lot owners who have at least 25 per cent of the total lot entitlements.

 

For further information or enquiry on the above, please contact us or Michael Xu.