NO AGM as all apts are not sold

[Frank]

Just heard there will be no AGM this year as not all the apt's are sold.

I have my keys about 1 year now.

This seems wrong?

On that logic the builder could keep one apt and never have an AGM.

 

[shesells]

Re: NO AGM as all apt's are not sold

No builder wants or can afford unsold units these days. Our first AGM was about 18 months after we moved in but all was in order so don't worry. In the meantime as an owner you are a member of the management company and entitled to raise any issues you may have with the directors who I presume are the builders?

 

[Complainer]

On that logic the builder could keep one apt and never have an AGM.

There is an important lesson here for buyers of apartments and houses in gated communities to ensure that there is some time limit on the period for which the developer can retain control of the management company. This is a good time for buyers to be picky and negotiate on contracts.

 

[cinders]

Have a look at the NCA property website - [broken link removed] - there's a topic re: Membership of a Management Company.

I thought that an AGM was required regardless if all the units are sold or not. We had an AGM for each of the years the Builders were directors and were still building further units.

 

[scallywag]

I'm in a development that has also not been handed over by the builders, even after 2 years. There have been meetings, but I don't know whether they were officially AGMs or not. If the development has not been handed over, then as I understand it there are no resident/owner directors on the Management Company board, and there are no shareholders as such, so how useful can an AGM be?

Does anybody know what the actual legal situation is: could the builders in theory hold onto one or more apartment for 10 years, and never release control of the management company? And could they, in theory, increase the management fees by any arbitrary amount during this time?

 

[Sunny]

An AGM has to be held regardless of whether all the apartments are sold or not. The Management Company is subject to the same company law as any other incorporated entity. You can contact the Office Of the Director Of Corporate Enforcement if you think the Management Company is breaking company law. Are you sure an actual Management Company was set up? Ask for a copy of the Company's Memorandum and Articles Of Association if you haven't seen them. I think you can inspect them online at the Companies Registration Office also.