Do You Still Need to Hold AGMs in a Self-Managed Scheme?

A Detailed Guide for NSW Self-Managed Strata Schemes

A common misconception among self-managed strata committees is that Annual General Meetings (AGMs) are optional once a scheme becomes self-managed.

This misunderstanding often leads to:

• expired insurance policies
• invalid levy decisions
• unapproved budgets
• non-compliant committee appointments
• incorrect fund balances
• exposure to tribunal action

In reality, self-managed schemes have the same AGM obligations as schemes with a strata manager.

This guide explains when AGMs are legally required, what must be included, what happens if you don’t hold one, and how to stay compliant without a strata manager.

1. The Legal Requirement: Yes, AGMs Are Still Mandatory

Under NSW strata legislation, every Owners Corporation must hold an Annual General Meeting once in every financial year.

Being self-managed does not remove this obligation.

An AGM is required to:

• appoint the strata committee
• approve the annual budget
• set levies for the coming year
• confirm insurance
• review financial statements
• approve key motions
• authorise major decisions

If your scheme does not hold an AGM, many of your decisions become invalid or legally vulnerable.

2. When Must an AGM Be Held?

An AGM must be held:

• once every 12 months
• no later than the time required under your scheme’s meeting cycle
• with proper written notice issued to all owners

Delaying AGMs creates a chain reaction of non-compliance across:

• levies
• insurance
• committee authority
• financial reporting

3. What Happens If a Self-Managed Scheme Skips an AGM?

Failure to hold an AGM can cause serious legal and financial consequences.

1. Your Budget and Levies Become Invalid

Without an AGM:

• levies cannot be properly approved
• existing levy schedules may expire
• arrears enforcement becomes vulnerable
• special levies can be challenged

2. Your Insurance May Be Non-Compliant

Without AGM confirmation:

• insurance renewals may not be formally approved
• under-insurance risks increase
• claims may be disputed
• brokers may demand meeting evidence

3. Committee Authority Can Be Challenged

Committee positions must be confirmed annually at the AGM.

If this does not occur:

• current committee members may lose authority
• decisions can be overturned
• contractors may refuse instructions
• disputes escalate quickly

4. NCAT Exposure Increases

An owner can apply to NCAT to:

• force the scheme to hold an AGM
• invalidate past decisions
• dispute levies
• seek orders for maladministration

4. What Motions Must Be Included at an AGM?

A compliant AGM agenda must normally include:

• confirmation of the financial statements
• determination of estimates for Admin & Capital Works Funds
• setting of levies
• election of committee members
• confirmation of insurance policies
• review of the Capital Works Fund Plan
• consideration of any special motions
• any compulsory compliance reporting

Missing mandatory motions may result in partial invalidity of the meeting.

5. Can a Self-Managed Scheme Hold an AGM Remotely?

Yes — NSW strata legislation allows AGMs to be held:

• via video conferencing
• via teleconference
• or in hybrid format

This means:

• no physical venue is required
• owners can attend remotely
• proxies can still be used
• voting remains valid

This is especially important for small self-managed schemes with interstate or unavailable owners.

6. What If Owners Refuse to Attend the AGM?

If owners don’t attend:

• the meeting can still proceed if a quorum is achieved
• proxies may be used
• adjourned meetings can lawfully proceed with reduced quorum rules

Committees must still attempt to hold the AGM properly — non-attendance does not remove the legal requirement.

7. Common AGM Mistakes in Self-Managed Schemes

The most common compliance errors include:

• not issuing proper notice
• missing mandatory motions
• incorrect levy approvals
• invalid proxy handling
• poor minute-taking
• failure to elect committee members
• failing to confirm insurance
• no Capital Works Fund review

These errors often accumulate year after year until a serious dispute arises.

Final Thoughts

Yes — you absolutely must still hold AGMs in a self-managed strata scheme.

Skipping an AGM:

• invalidates levies
• weakens insurance protection
• strips committee authority
• exposes the scheme to NCAT action
• creates financial and legal vulnerabilities

When AGMs are done properly, they protect the scheme, the committee, and every owner financially and legally.

Strata On Demand Can Help

Strata On Demand provides professional support for self-managed schemes across NSW, offering 30+ services designed to simplify your workload, reduce risk, and deliver professional documentation without the cost of a full-service strata manager.

No contracts. No full-service strata manager fees.

Pay only for the services you need, when you need them.

For AGM compliance and meeting management, these are the five most relevant services:

1. AGM / EGM Agenda Drafting

Ensures all mandatory motions are correctly included and legally structured.

2. AGM / EGM Meeting Chairing (Remote)

Provides compliant meeting facilitation without onsite attendance.

3. AGM / EGM Minute-Taking

Delivers accurate, tribunal-ready minutes for legal protection.

4. Budget Preparation

Creates compliant Admin & Capital Works Fund budgets for levy approval.

5. Compliance Health Check

Identifies meeting, levy, and governance risks before disputes arise.

If your scheme is overdue for an AGM, uncertain about compliance, or wants professional AGM support without a strata manager, contact Strata On Demand now for fast, compliant assistance.