Annual General Meetings (AGMs) and Special General Meetings (SGMs) are important governance mechanisms in strata/condo corporations and non-profit organizations.
Knowing their purpose, differences, and how to conduct them well can increase participation, enhance governance, and provide compliance with legal requirements.
This article presents a broad introduction to AGMs and SGMs, how to best hold them, differences between the provinces, reasons that unit owners must attend, and answers to some of the more common questions.
What is an Annual General Meeting (AGM)?
In short, an Annual General Meeting (AGM) is a statutory yearly meeting held by a strata/ condo or HOA corporation, in which unit owners gather to review important issues, approve financial reports, elect members of the board, and decide on future needs.
Purpose of an AGM
The purpose of an AGM is typically the following:
- To present the annual report and accounts.
- To approve the work of the council or board for the last year.
- To elect or to re-elect council or board members.
- To approve budgets, appointments of auditors, and dividends (if any).
- To provide a forum for members to ask questions and raise issues.
- To vote and debate other significant matters affecting the corporation or organization.
Timing
AGMs are usually conducted on each calendar year, typically within six months of the financial year end to allow the final financial statements to be approved. New strata and condo corporations must hold the first AGM not later than 12 months from registration.
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Best Practices for Running an Effective AGM
Organizing a productive AGM requires thorough planning, effective communication, and efficient meeting management. These are the key best practices for board and council members:
Preparation
Understanding Legal Requirements
Begin your AGM preparation by thoroughly familiarizing yourself with all applicable statutory guidelines, organizational bylaws, and regulatory deadlines. These legal frameworks dictate essential elements such as notice periods, required agenda items, and documentation protocols.
Determining Date, Time, and Location
Carefully select a date, time, and location that maximizes stakeholder participation. Choose a venue that is accessible, appropriately sized, and equipped with necessary facilities.
Ensuring Virtual Availability
In today’s online connected world, offering hybrid or virtual attendance options is increasingly important. Implement reliable video conferencing technology that supports secure voting and participant authentication.
Drafting and Distributing the Agenda
Create a comprehensive, typed agenda that includes all required items and allocates realistic time frames for each. Distribute the agenda with all supporting documents well in advance, allowing participants sufficient time to review materials and prepare questions.
Preparing Reports
Ensure all required reports, financial statements, operational updates, audit results, and director reports, are thoroughly prepared, accurate, and professionally presented. Financial reports should include balance sheets, income statements, cash flow analyses, and budget comparisons.
Arranging Voting Procedures
Establish clear voting protocols that comply with your organizational rules, whether utilizing in-person ballots, proxy voting, or electronic voting systems. Prepare official ballots or voting systems in advance, and clearly communicate to all members how voting will be conducted.
Ensuring Quorum
Actively track RSVPs and anticipated attendance to confirm you’ll meet the quorum requirements specified in your bylaws. Develop contingency plans if quorum appears at risk, such as personal follow-up with key members or rescheduling strategies. Maintain accurate membership records to definitively determine what constitutes a quorum, and have a process in place to formally verify quorum at the meeting’s start.
During the Meeting
The Chairperson’s Role
The chairperson must effectively conduct the meeting with authority and impartiality. This involves guiding discussions while ensuring all voices are heard. They should maintain control of the floor, direct the sequence of speakers, prevent domination by vocal individuals, encourage participation from quieter members, and tactfully manage interruptions or digressions.
Sticking to the Agenda
Adhere closely to the prepared agenda, addressing each item in sequence and allocating appropriate time according to importance. When discussions begin to drift off-topic, the chairperson should gently redirect focus to the matter at hand.
Encouraging Participation
Consider implementing structured feedback mechanisms for those who may be reluctant to speak publicly, and ensure virtual participants have equal opportunities to contribute.
Conducting Voting
Execute all voting procedures with absolute impartiality and transparency. Clearly state each motion before voting, allow appropriate time for discussion, and precisely outline the voting method. Count votes methodically, announce results promptly, and record the outcome accurately in the minutes, including vote tallies when appropriate.
Recording Minutes
Maintain comprehensive, accurate minutes that document all substantial discussions, formal motions, voting results, and action items. Minutes should capture key points from reports and major discussions without necessarily being verbatim. Consider using audio recording as backup while still producing formal written minutes.
Post-Meeting Actions
Distributing Minutes
Prepare and distribute meeting minutes promptly—ideally within one week of the meeting—to all members and relevant authorities. Minutes should be clearly formatted, include all attachments referenced during the meeting, and be distributed in accessible formats to all stakeholders. Establish a verification process for minutes before distribution to ensure accuracy and completeness of all recorded information.
Implementing Resolutions
Act promptly on all decisions and resolutions passed during the meeting. Assign specific responsibility for each action item, establish clear timelines for completion, and create a tracking system to monitor progress. Update organizational records, policies, and procedures to reflect changes approved during the meeting.
How are Special General Meetings (SGM) Different?
A Special General Meeting (SGM) is a general meeting arranged outside the normal AGM schedule to discuss pressing or special issues that could not be deferred until the next AGM.
An SGM is held for a number of different reasons, including:
- By the board or council where there is a pressing need for decisions.
- By owners who represent a set number of votes (ordinarily 20%) and request it following proper procedures.
- To address significant issues such as significant repairs, amendments to bylaws, unexpected expenses, or other special business.
Differences from AGM
| Feature | AGM | SGM |
|---|---|---|
| Frequency | Held annually | Called as needed |
| Agenda | General, such as annual reports, elections, budgets | Specific, with respect to pressing issues |
| Notice Period | Typically 14+ days | Usually at least 14 days |
| Purpose | Review past year, elect board, approve finances | Address urgent or special matters |
| Attendance Expectation | High, scheduled in advance | Variable, often less predictable |
SGMs occur less frequently than AGMs but are necessary for on-time governance and decision-making.
Best Practices for Running an Effective SGM
Though most best practices for AGMs can be applied to SGMs, there are some modifications because of their targeted and occasionally urgent nature:
- Clear and Precise Agenda: Make sure the notice is unambiguous about purpose and matters, keeping the meeting to those alone.
- Prompt Notice: Give proper notice to all owners, within legal minimums.
- Effective Meeting Management: Make the meeting short and to the point to show respect for attendees’ time.
- Prepare Supporting Documents: Keep relevant information and reports relating to the specific issues beforehand.
- Voting Procedures: Describe voting procedures, especially for resolutions requiring special majorities (e.g., 3/4 vote).
- Follow-Up: Implement decisions quickly and report results clearly to all owners.
How AGMs & SGMs May Differ By Province
The specific requirements governing these meetings vary significantly between provinces due to different legislative frameworks. Here is how they may differ:
British Columbia
In British Columbia, strata corporations operate under the Strata Property Act. The legislation mandates that all strata corporations must hold an Annual General Meeting within six months of their fiscal year-end. This timeline is strictly enforced, with potential legal consequences for non-compliance.
For Special General Meetings in BC, the threshold for requisitioning a meeting is clearly defined: owners holding at least 20% of the strata corporation’s votes can formally request that council call an SGM. Once such a request is properly submitted, the strata council must hold the meeting within four weeks.
Alberta
Alberta’s condominium regulations follow the Condominium Property Act, which establishes different timelines than those in British Columbia. In Alberta, the first AGM must be convened within 12 months of the condominium plan’s registration, giving developers more time to organize initial governance structures. For established condominiums, subsequent AGMs must be held within 15 months of the previous meeting.
For Special General Meetings, Alberta allows owners representing at least 15% of the total unit factors to requisition an SGM by written notice, a threshold slightly lower than BC’s 20% requirement. Once properly requisitioned, the board must convene the meeting within 30 days.
Saskatchewan
The Saskatchewan condo act dictates that the first AGM must be called within one year of the condominium’s registration, similar to Alberta’s requirement. For established condominiums, AGMs must be held within 15 months of the previous meeting. Notice periods require at least 15 days’ written notice.
Saskatchewan has unique provisions regarding quorum requirements, setting the standard at owners representing 1/3 of the total unit factors. However, if this quorum is not present within 30 minutes of the meeting’s scheduled start, the meeting is adjourned to the same day the following week.
Manitoba
Manitoba’s Condominium Act requires that the first AGM be held within 12 months of registration, with subsequent AGMs occurring within 15 months of the previous meeting.
In Manitoba, Special General Meetings can be requisitioned by owners representing at least 25% of the voting rights. The board must then call the meeting within 35 days of receiving the requisition.
Ontario
Ontario’s condominium sector operates under the Condominium Act, 1998, which contains some of the most comprehensive meeting regulations in Canada. Ontario requires that the first AGM be held within 3 months after registration of the declaration and description. After the turnover meeting, subsequent AGMs must be held within six months of the fiscal year-end.
For Special General Meetings, Ontario requires that owners of at least 15% of the units submit a requisition. The board must then call and hold the meeting within 35 days of receiving the requisition. If the board fails to act, the requisitionists may call the meeting themselves, provided they represent at least 15% of the units.
Quebec
Quebec’s legal framework differs significantly from other provinces due to its civil law system.
In Quebec, the syndicate of co-owners must hold an Annual General Meeting within six months following the fiscal year-end.
For Special General Meetings in Quebec, co-owners representing 25% of the voting rights can request that the board of directors convene a meeting, a higher threshold than most other provinces. The board must then call the meeting within 21 days of receiving the requisition.
Nova Scotia
Nova Scotia’s Condominium Act requires that the first AGM be held within 3 months of registration, similar to Ontario’s timeline. For established condominiums, AGMs must occur within nine months after the end of each fiscal year. Notice periods require at least 10 days’ written notice, among the shortest in Canada.
In Nova Scotia, a Special General Meeting can be requisitioned by owners representing at least 25% of the common elements, a requirement based on ownership share rather than unit count. The board must then call the meeting within 30 days of receiving the requisition.
New Brunswick
New Brunswick’s Condominium Property Act requires the first AGM within six months of registration, and subsequent AGMs within six months after each fiscal year.
For Special General Meetings, New Brunswick allows requisitioning by owners representing at least 25% of the voting rights, similar to Quebec’s requirement. The board must then call the meeting within 30 days of receiving the requisition.
Prince Edward Island
Prince Edward Island’s Condominium Act requires the first AGM within six months after registration, with subsequent AGMs occurring within six months after each fiscal year.
Special General Meetings in PEI can be requisitioned by owners representing at least 20% of the common elements. The board must then call the meeting within 35 days of receiving the requisition.
Yukon, Northwest Territories, and Nunavut
These territories generally have less detailed condominium legislation than the provinces. In most cases, the territorial Condominium Acts defer to the corporation’s bylaws for specific meeting requirements. Generally, quorum requirements typically range from 25% to 33% of eligible votes.
Why Should Unit Owners Attend an AGM or SGM?
There are several reasons why, as a unit owner, you’d want to attend an AGM or SGM. Including:
Staying Informed About Your Investment
These meetings also serve as forums for discussing ongoing and planned maintenance projects that directly impact property values. Major capital expenditures, such as roof replacements, elevator modernizations, or building envelope remediation, are typically presented with detailed timelines and financial implications.
Having a Voice in Community Governance
AGMs and SGMs represent the primary forums where unit owners can directly engage with elected representatives and property management. By attending these meetings, owners can ask important questions about financial decisions, management practices, or maintenance priorities in real-time, often receiving immediate responses from those responsible.
Exercising Voting Rights on Critical Matters
Perhaps the most tangible impact of attendance comes through the exercise of voting rights on matters that directly affect the community and individual units. Annual budgets, which determine monthly fees and spending priorities, typically require owner approval at AGMs.
Building a Stronger Community Through Connection
Beyond the formal governance benefits, AGMs and SGMs foster community cohesion and neighbor relationships that enhance quality of life within the development. These gatherings provide rare opportunities for face-to-face interaction among owners who might otherwise have limited contact despite living in close proximity.
Ideas to Encourage More Owners to Come
- Offer Hybrid Meetings: Utilize in-person and online attendance options to accommodate different needs.
- Advance Notice: Provide clear, timely notice of meeting details and agenda.
- Engaging Agendas: Address issues of interest and concern to owners.
- Friendly Atmosphere: Create friendly environments that encourage input.
- Inform on Importance: Use the above insights to help owners know about the importance of attending.
Other Commonly Asked Questions
What documents should be made available at an AGM and SGM?
- Minutes of previous meetings.
- Financial reports and audit reports.
- Annual reports and operational reports.
- Proposed resolutions and bylaw changes.
- Voting instructions and proxy forms.
What is Quorum?
Quorum refers to the number of members or votes required to legally conduct the meeting. It is usually set in the bylaws or governing law and must be met to validate decisions made at the meeting.
What happens during voting periods at an AGM?
The process begins with the chairperson explaining the specific matter requiring a vote and outlining the voting method to be used. Whether by show of hands, secret ballot, or electronic means.
Following this introduction, owners are provided an opportunity to ask questions or discuss the item. The chairperson then provides clear instructions on how to mark ballots or indicate choices.
Finally, votes are cast according to the designated method, with owners submitting their ballots, raising voting cards, or using electronic systems as appropriate. Then the chairperson announces whether the motion passed or failed.
Final Thoughts
By following these important best practices for AGMs and SGMs, you’ll be well on your way to running effective meetings that inform unit owners, get people on board for important decisions and voting, and run an effective condo or HOA board that helps the owners reach their intended goals.