No AGMs for two years? Why that’s a serious problem in sectional title schemes

In sectional title living, meetings matter. And when Annual General Meetings (AGMs) aren’t held, the cracks in governance, accountability, and financial transparency begin to show.

We recently received a concern from an owner whose body corporate hadn’t held an AGM in over two years. This isn’t just inconvenient, it’s a breach of legal requirements, and it leaves owners in the dark about the financial health and decisions of their scheme. And it is happening (or not happening) all too often.

Let’s break down why it matters and what you can do about it.

The AGM is where owners:

• Get clarity on how their levies are being spent;
• Approve or question the financial direction of the scheme;
• Elect trustees who represent their interests;
• Raise concerns about maintenance, security, or rule enforcement;
• Learn about risks, plans, and performance.

Without an AGM, owners are sidelined, and decisions may be made without proper mandates.

If your body corporate hasn’t held AGMs for an extended period (like two years), here’s what you can do:

1. Raise it with the trustees or the managing agent

Start with a formal written request. Ask when the last AGM was held, and request the scheduling of the next one. Keep the communication factual and courteous.

2. Request access to financial records

As an owner, you have the right to inspect the body corporate’s records — including bank statements, budgets, and invoices.

3. Escalate to the Community Schemes Ombud Service (CSOS)

If there’s no response or continued delay, lodge an application with CSOS. Under s 39 of the Community Schemes Ombud Service Act  (“the CSOS Act”), the Ombud has the power to:

• Order that an AGM be held within a specified time;
• Compel trustees or managing agents to comply with their legal obligations.

4. Consider changing your managing agent and electing new trustees

If the managing agent and/or trustees have allowed poor compliance, the body corporate may need to re-evaluate their contract, election and appointment or performance so that they can be removed at the next AGM or before, if possible, and depending on the circumstances.

Without annual AGMs:

• Owners don’t approve budgets or levy increases;
• Trustees may act without a formal mandate;
• Financial records may go unaudited or unchecked;
• The scheme may fall out of legal compliance;
• Loans, levies, or special projects may proceed without proper approval.

These risks can affect property values, service delivery, and even property sale transactions if buyers or their attorneys pick up on governance gaps during due diligence.

AGMs are not optional. They are the foundation of democratic governance in community schemes. Skipping them isn’t just poor practice — it’s a governance failure.

If you haven’t seen an AGM notice in two years, it’s time to act. Start with engagement, and if needed, escalate to CSOS. Because silence around the finances of your scheme can quickly turn into a far bigger problem, one that affects every owner and the value of their investment.

Are you in need of expert legal advice? Our specialist legal team is standing by to support and guide you with all your “complex” issues.