Preparing for the First AGM in a Strata Building (NSW)

The first Annual General Meeting (AGM) of a strata building is a critical event for all owners. It’s more than a procedural step—it’s the cornerstone for how your building will be managed, maintained, and governed. Thorough preparation ensures you can make informed decisions and avoid costly mistakes.

1. Understand the Purpose of the AGM

The first AGM establishes the framework for your building’s management. Key decisions include:

• Electing a strata committee.
• Approving budgets for administrative and capital works funds.
• Reviewing building defects and maintenance plans.
• Deciding on by-laws and appointing managers.

Your participation shapes the direction of your building’s future.

2. Review the Agenda and Documents Thoroughly

The AGM agenda will cover critical decisions, including management appointments and budgets. Take time to review:

• Interim contracts for strata or building managers.
• Financial forecasts and budgets.
• Maintenance schedules and insurance policies.

Action Step:

Request these documents at least 14 days before the meeting. Highlight areas requiring clarification or negotiation, particularly regarding contracts or commitments that could impact the building long-term.

3. Evaluate Long-Term Commitments

The first AGM often involves approving significant long-term agreements that can affect your building’s finances and operations for years to come. These may include:

• Contracts for strata managing agents.
• Building maintenance or cleaning providers.
• Shared services or utilities, such as embedded networks for electricity, gas, or internet.

Embedded Network Agreements

Embedded networks can offer convenience and lower initial costs, but they often come with long-term commitments. Key considerations include:

• Locked-in Rates: Contracts may lock your building into fixed rates that become uncompetitive.
• Limited Provider Options: Switching to alternative providers may be restricted.
• Billing Complexities: Embedded networks can complicate billing and dispute resolution.

Action Step:

Request full details of all long-term agreements, including embedded network contracts, before the AGM. Carefully review the terms for fairness, transparency, and alignment with the building’s long-term interests. Seek legal advice if necessary, and advocate for changes or alternative options if the terms are unfavorable.

4. Collaborate with Other Owners

Aligning with other owners before the meeting ensures stronger advocacy on key issues like:

• Building defects and rectification timelines.
• Reasonable budgets and levies.
• Fair by-laws and management appointments.

Action Step:

Host a pre-meeting discussion or connect via email or group chats to share concerns and ideas. This collaborative approach strengthens your position during the AGM.

5. Electing the Right Strata Committee

The strata committee will represent owners in ongoing decisions. It’s crucial to elect proactive, reliable members.

Action Step:

Consider running for a position or nominating others who demonstrate fairness, transparency, and a commitment to the building’s long-term success.

6. Create a Dedicated Email Address for Strata Communications

If you’re considering taking on an officeholder role within the committee, such as Chairperson, Secretary, or Treasurer, it’s wise to set up a dedicated email address for all strata-related correspondence.

Why This Matters:

• Professionalism: A separate email keeps your communications clear and distinct from personal correspondence.
• Continuity: If you step down, this email can be handed over to the next officeholder, ensuring seamless communication.
• Organisation: It helps you manage strata matters more effectively and provides a single point of contact for owners and external stakeholders.

Action Step:

Set up a professional-sounding email address, such as [email protected], and use it exclusively for strata-related communication. Share this email with all relevant parties, including other committee members, owners, and service providers.

7. Review Insurance and Defects

Ensure the building is adequately insured and that defects are documented and prioritised for resolution. This includes:

• Reviewing the insurance policy for comprehensive coverage.
• Conducting a personal inspection of your lot and common areas for defects.

Action Step:

List any concerns to raise during the meeting and advocate for swift action on building defects, as they can escalate into costly problems.

8. Be Ready to Negotiate

From management contracts to embedded networks, the first AGM presents opportunities for negotiation. Preparation and collaboration are key to securing fair terms.

By taking the time to prepare, review agreements, and align with other owners, you can navigate the first AGM with confidence. This proactive approach lays the foundation for a well-managed and harmonious strata community.

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