Timeline Requirements for Holding the First AGM
The first annual general meeting (AGM) is a critical milestone in a condominium corporation’s governance. According to the Condominium Property Act (CPA), a condominium board must hold the first AGM within 12 months after the registration of the condominium plan.
If the board fails to hold the AGM within this timeframe, owners may take legal action, and the board may face penalties or intervention from the courts. The AGM ensures that owners can participate in electing a board, reviewing financial statements, and approving decisions affecting the condominium.
Importance of Holding the AGM on Time
The first AGM serves several essential functions, including:
Electing the board: Owners formally elect the condominium board, transitioning governance from the developer.
Reviewing financials: The board presents financial statements, including the reserve fund report, to ensure transparency.
Approving bylaws and operational policies: The AGM is a platform for making critical decisions that impact governance.
Consequences of Missing the Deadline
Failure to hold the AGM on time can result in:
Legal challenges from owners
Inability to make key financial and operational decisions
Potential fines or government intervention
Determining Compliance with CPA AGM Deadlines
To assess compliance, a condominium manager should:
Review condominium registration documents to confirm the date of plan registration.
Check corporate records to determine if the AGM was scheduled within 12 months.
Verify if proper notice of the meeting was provided to unit owners at least 14 days in advance.
Confirm that the required financial documents were presented at the AGM.
