Property glossary
AGM (Annual General Meeting)
Also known as: annual general meeting
The yearly meeting of a community scheme where owners approve the budget, elect trustees and pass resolutions on the scheme's running.
Definition
An AGM is the compulsory annual meeting of the owners of a community scheme such as a body corporate or homeowners' association. At it the members consider and adopt the annual financial statements, approve the budgets for the administrative and reserve funds (which set the levies), elect the trustees or directors, and decide ordinary and special resolutions. It is the principal forum through which owners exercise control over how their scheme is managed.
In the South African context
For sectional title schemes the Sectional Titles Schemes Management Act (STSMA, Act 8 of 2011) and its regulations require a body corporate to hold an AGM within four months of the end of its financial year, with prescribed notice to owners. The Act sets quorum requirements and distinguishes ordinary resolutions, special resolutions and unanimous resolutions by the majority needed. Homeowners' associations hold AGMs under their own constitution or memorandum of incorporation, and disputes about meetings can be referred to the Community Schemes Ombud Service under the CSOS Act 9 of 2011.
Example
A 30-unit body corporate gives 14 days' notice, achieves a quorum, adopts a R1.2 million administrative budget for the year and elects five trustees; the approved budget then drives a levy of about R3 300 per unit per month.
Why it matters
The AGM is where levies are legitimised and trustees get their mandate, so a properly convened and minuted AGM is essential for raising enforceable levies and avoiding CSOS challenges.
Informational only — not legal advice. Confirm specifics against the current Act and your scheme’s rules.
Sources
- STSMA — Sectional Titles Schemes Management Act 8 of 2011 — body corporate must hold an AGM within four months of financial year-end
- CSOS Act — Community Schemes Ombud Service Act 9 of 2011 — disputes about meetings and resolutions referable to CSOS