Right to vote at AGM

Gordon Gekko said:
Ridiculously misguided semantics…it’s ‘set’ by the Members at the AGM.

The Directors suggest/propose and the Members agree/set/vote it in.

What do you think ‘set’ means? You ‘set’ something and that’s it done.
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I would think that setting a budget means devising it, by looking at likely upcoming expenditure. I am a Management company Director. We set the budget every year by investigating the increases likely for services and tendering contracts to get best value etc. We also prioritise the expenditure that we consider essential for the year ahead. This takes some time and is not a process that can be done at one meeting. Members then agree or disagree with it. Setting a budget requires steps and it is not possible for it to be done by members at the AGM.
To set a budget, follow these steps

  1. Calculate your net income.
  2. Track your spending.
  3. Set realistic goals.
  4. Make a plan.
  5. Adjust your spending to stay on budget.
 
Threadser said:
I would think that setting a budget means devising it, by looking at likely upcoming expenditure. I am a Management company Director. We set the budget every year by investigating the increases likely for services and tendering contracts to get best value etc. We also prioritise the expenditure that we consider essential for the year ahead. This takes some time and is not a process that can be done at one meeting. Members then agree or disagree with it. Setting a budget requires steps and it is not possible for it to be done by members at the AGM.
To set a budget, follow these steps

  1. Calculate your net income.
  2. Track your spending.
  3. Set realistic goals.
  4. Make a plan.
  5. Adjust your spending to stay on budget.
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“Decided on” by the members…

The point in the context of this discussion is that it can’t be imposed on the members.
 
I clarified what I meant by "setting" the budget as you requested. Yes, it cannot be imposed on members as they have a vote if they are fully paid up.
 
The correct terminology is that the Directors prepare and propose a budget to the members, who then accept or reject it

There is no such thing as "setting a budget"
 
jpd said:
The correct terminology is that the Directors prepare and propose a budget to the members, who then accept or reject it

There is no such thing as "setting a budget"
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Strange the internet is full of information on how to "set a budget". ;)
 
"Set" as i prepare - but it was used in the sense of being adopted or accepted in the earlier topic

Sometimes colloquial speech is fine, but in some circumstances it pays to be precise about a subject and not leave the issue open to different interpretations
 
Thanks for all the replies and info this far. Anecdotal but most non-active members I've spoken to are not happy with how the company is run. Now a 50% - 60% hike in the service charge without proper process and the agent responsible for this departing has left us in a mess. Given the sudden and uninformed nature of the hike, I would think most members aren't happy. The current directors do not attend AGMs or respond to any communication, they retain ownership of all roads and common areas and control of the bank account into which fees are paid(The estate is 20+ years old). On the overcharging we did get some quotes and spoke to residents of similar-sized developments regards their fees and we are definitely on the expensive side probably not as much as people think, but are paying for 5 star services and getting 2.
 
I don't think you can say the agent was responsible - the agent acts under the control of the directors. It is easy to blame the agent, but he is exactly what it says - an agent is a person who acts on behalf of another person, group, business, government, etc; but who is controlled by them
 
True but I would expect the agent to insist due process was followed, obtain several quotes for services and keep proper records and minutes etc. They did none of those things for more than a decade and when eventually pulled up on it they committed to do things properly in future and then resigned so by their inaction/incompetence they are culpable IMO!
 
And what about the directors who condoned this behaviour for more than a decade?

Sometimes people have to accept responsibility for their actions or inactions - the majority of owners of the properties seem, by and large, to have accepted the way it was run in the past by their inaction.

All you can do now, is to mobilise enough owners to participate in calling an EGM, change the directors and move on from there
 
I hear you and I agree I'm not laying it solely on the agent everyone, particularly the directors bears responsibility however it was only with the sudden fee increase that all the previous failings and irregularities came to light. We've also been advised to keep the directors on side and not force anything which leaves us in limbo as they still own all the common areas and are the only signatories to the bank account. If we were to force their replacement can ownership and the accounts be transferred without their cooperation?
 
tnegun said:
We've also been advised to keep the directors on side and not force anything which leaves us in limbo as they still own all the common areas and are the only signatories to the bank account.
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It is beyond time for the original Directors to resign and for some owners to volunteer their services on the board and become signatories on the bank account. Then the owners are in charge of all expenditure. In the case of our estate ,we only allow the Agent viewing rights on our account and owners have to co sign all expenditure. The common areas of the estate should then be handed over to Residents. This is a legal process that takes some time to complete. There is some work involved here but it is the only way to ensure that all expenditure is being monitored and best value for owners is being achieved.
 
tnegun said:
Thanks for all the replies and info this far. Anecdotal but most non-active members I've spoken to are not happy with how the company is run. Now a 50% - 60% hike in the service charge without proper process and the agent responsible for this departing has left us in a mess. Given the sudden and uninformed nature of the hike, I would think most members aren't happy. The current directors do not attend AGMs or respond to any communication, they retain ownership of all roads and common areas and control of the bank account into which fees are paid(The estate is 20+ years old). On the overcharging we did get some quotes and spoke to residents of similar-sized developments regards their fees and we are definitely on the expensive side probably not as much as people think, but are paying for 5 star services and getting 2.
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Did they send a draft budget for the year ahead along with proposed service charge?
 
No just invoices and a statement of the accounts in the post for 2019-2022. No public AGMs were held in this period either due to covid with a modest increase in fees in 2022, there are no records minutes etc. for these. When pushed these were then reconvened behind closed doors with no notice in mid 2023. A new service charge 50-60% higher was then invoiced to members back dated to Jan 2023, no budget was presented to justify the increase and numerous excuses are made delaying before the 2023 AGM is eventually held in late 2023.

A very poor budget is presented with conflicting information, balances that don't tally and some costs increased by 300% naturally this is rejected by members, the agent suspended the meeting to allow time to correctly prepare the budget and provide accounts to the members but chose to step down instead of dealing with the mess. A new agent was then appointed and now it appears the AGM will be held in May/June but as most active members have only paid the original charge they are now in arrears and cannot vote.
 
tnegun said:
No just invoices and a statement of the accounts in the post for 2019-2022. No public AGMs were held in this period either due to covid with a modest increase in fees in 2022, there are no records minutes etc. for these. When pushed these were then reconvened behind closed doors with no notice in mid 2023. A new service charge 50-60% higher was then invoiced to members back dated to Jan 2023, no budget was presented to justify the increase and numerous excuses are made delaying before the 2023 AGM is eventually held in late 2023.

A very poor budget is presented with conflicting information, balances that don't tally and some costs increased by 300% naturally this is rejected by members, the agent suspended the meeting to allow time to correctly prepare the budget and provide accounts to the members but chose to step down instead of dealing with the mess. A new agent was then appointed and now it appears the AGM will be held in May/June but as most active members have only paid the original charge they are now in arrears and cannot vote.
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If the budget wasn't approved then how can anyone be in arrears, did they raise invoices based on the unapproved budget?
 
Yes, but they say that the directors and agent were the only attendees of these AGMs and approved the budget. I think the most straightforward way out of this now is to pay up and try to replace the directors.
 
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