A reader who lives in a sectional title complex wants to know what he can do about the trustees and managing agent failing to call annual general meetings.
It should be noted that an annual general meeting must be held within four months of the scheme’s financial year-end.
From the information provided by the reader it appears that several years have passed since an AGM has taken place.
See the reader’s question here.
When an AGM is not called within the prescribed period the duty to call it as soon as possible still rests with the trustees.
If they fail to do so, the Community Schemes Ombud Service Act (section 38-1) states that any person may make application for it to be held if that person is a party to or affected materially by a dispute.
Another section (38-2) then sets out the manner in which such an application should be made.
It must take a certain format, be lodged with the appropriate ombud and be accompanied by the prescribed application fee.
The act further states that the party making application should set out the desired relief and the grounds upon which it is sought.
Section 39 sets out various options for relief that can be applied for in accordance with the provisions of section 38.
In particular, one of the sub-sections provides that, in respect of meetings, the relief that may be sought is for an order requiring the association to call a general meeting of its members to deal with specified business.
The reader should also consider checking whether the contract with the managing agent is still in place and look at the terms thereof to assess whether there is negligence in the failure to call AGMs.
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