Simple guide to holding an AGM in a two-lot scheme
Knowing what rules and exemptions apply to your two-lot scheme can make holding your annual general meeting (AGM) much easier, especially if your strata scheme is self-managed.
Here we outline what your two-lot scheme needs to do and the steps to get you there.
All two-lot schemes in NSW (for example, strata-titled duplexes) must comply with strata laws including:
- keeping clear records
- holding meetings including an AGM each year
- completing their annual strata reporting within 3 months of their AGM.
What are two-lot schemes exempt from?
Unlike most schemes, there are a number of rules that don’t apply to two-lot schemes. These are:
- Selecting a strata committee. Two-lot schemes have an automatic committee made up of one owner from each lot. If more than one person owns a lot, only one of them can be on the committee.
- Accounts and financial statements don’t need to be audited.
- Owners can separately insure their own lots and be exempt from having a capital works fund if:
- the buildings in each lot are physically detached;
- no building or part of a building is situated outside the lots; and
- the owners pass a unanimous resolution to not have building insurance for both buildings and/or not have a capital works fund.
- Most residential two-lot schemes will not require an annual fire safety statement. Other fire safety measures may apply – check with your local council.
How to hold an AGM in a two-lot scheme
AGMs give your scheme the opportunity to discuss finances and any other matters that affect you and the other lot owner, and plan for the year ahead.
1. Pick a date
Decide on an AGM date and time together with the other owner and where it will be held. You can have an online meeting if required.
2. Ensure both owners attend
In a two-lot scheme, an owner representing each lot must be at the meeting for it to go ahead. Alternatively, an owner can appoint a proxy voter by completing a proxy appointment form (PDF 163.15KB).
3. Go through the agenda and take minutes
An AGM must include a set of items, motions (which get voted on) and anything else you’d like to discuss with the other owner. These are:
- Attendance and minutes:
- Confirm that there’s an owner present from each lot and a motion to accept the minutes from the last AGM (if one was held).
- Utilities and repairs:
- An item to decide electricity, gas and other utility providers for common property within the two-lot scheme.
- An item to discuss building defects and how to fix them if there are buildings in the scheme covered by warranty periods.
4. Discuss finances
Discuss your finances appropriately by proposing and voting on:
- a motion to accept the financial statements for the past financial period. If your two-lot scheme is exempt from a capital works fund, this will only need to be prepared for the administrative fund.
- a motion to decide how to deal with unpaid or overdue levies, if applicable.
5. Share the minutes and keep records
Each owner must have a copy of the minutes within seven days after the meeting. You also need to keep a record of the meeting agenda, financial statements, and other information for at least seven years.
Appointing officeholder roles
You can decide between you who will be appointed to the roles of secretary, chairperson and treasurer. Your strata scheme will need to provide such details when you report information for your strata scheme. One owner can hold one or more of these roles – learn more about the different roles on our Who’s who in strata page.
When things go wrong
If you’re having issues or disputes about your strata scheme, there are steps you can take to resolve them. Read our step by step guide to resolving Strata disputes.
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