The general meeting is the co-owners’ annual gathering. At it, all the co-owners get together and make decisions in the interest of the proper functioning of the co-ownership.
In this article, OP takes a look at what happens at a general meeting.
The co-owners’ parliament
The general meeting (GM) brings together all the co-owners of a building, excluding tenants or persons from outside the building. It can be thought of as the co-owners’ parliament. Decisions are taken at the meeting and confirmed by vote. However, these decisions must comply with the articles of association and the law, as otherwise an action can be brought before the justice of the peace for their annulment.
Preparing for and convening the meeting
The property manager is in charge of preparing for the GM, which must be held at least once a year.
However, the property manager may convene a general meeting whenever it deems it necessary and as soon as any decision needs to be taken, in the interest of the co-owners. In addition, if one or more co-owners representing at least 20% of the co-ownership shares put forward a request to the property manager, the latter is required to convene a general meeting within 30 days.
What does the notice convening the general meeting contain?
A convening notice must be sent by registered post within the 15 days preceding the date of the general meeting. However, there is an exception to this rule: a co-owner may explicitly agree in writing to be invited by some other means of communication (email for example).
The convening notice contains the following information:
- The place, date and time of the meeting
- The agenda: a list of items to be discussed at the meeting
- Procedures for consulting documents relating to the points to be discussed
Can’t make it to the GM?
Don’t worry: you can be represented by an agent, who may or may not be another co-owner.
To do this, you must give your agent a written proxy for this purpose. A proxy form is usually attached to the notice of the general meeting.
Proceedings of a general meeting
At the start of the meeting
First of all, an attendance list containing the name of each of the co-owners and their respective co-ownership shares is signed by the co-owners present and by any proxies of absent co-owners. This attendance sheet makes it possible to verify that the majorities necessary to start the general meeting are present.
A chair is then elected at the start of the meeting, who must be a co-owner. The property manager acts as secretary to the meeting unless the meeting decides otherwise.
The chair’s role is to direct the discussion, call for a vote and ensure that the agenda is adhered to, interrupting any irrelevant discussion if necessary.
Can the meeting go ahead?
For a general meeting to be able to hold valid votes, it must be quorate in two ways:
- More than half of the co-owners must be present or represented, owning at least half of the shares in the common areas.
- More than 75% of the shares in the common areas must be represented.
If neither of these two quorums is reached, a second meeting will be convened within 15 days, which may go ahead regardless of the number of co-owners present or the shares represented.
Let’s take a vote!
The co-owners vote on the basis of their shares in the common areas.
Since 1 January 2019, there has been an exception to this principle with regard to charges that are not the responsibility of all co-owners. In the case of these charges, only the co-owners who pay may vote.
For example, if the co-owner of the ground floor does not contribute to the charges relating to the lift, he or she will not participate in votes on that subject. This enshrines the ‘payer decides’ principle.
Majorities
The required majority varies depending on the point being discussed:
- Two-thirds majority: for decisions about work in the common areas (such as the renovation of the stairwell or façade).
- Majority of 50% + 1 vote: for decisions about work required by law (such as complying with insulation standards or fire safety requirements).
- Four-fifths majority: for the demolition and reconstruction of residential buildings, provided that the demolition is necessary for health and safety reasons or because renovation would entail disproportionate costs.
- Unanimity: for the reconstruction of the building.
Minutes
The minutes are the written transcript of the general meeting. They contain all the decisions taken during the meeting, but also the majorities obtained and the names of the co-owners who voted against or abstained. This last point is important because, in the event of a challenge to a decision, only these co-owners will be able to appear before the justice of the peace.
Drawn up by the property manager, the minutes must be signed at the end of the meeting by the chair of the general meeting, the secretary and all co-owners still present at that time or their representatives.
Would you like more information about the general meeting? Feel free to contact us using our online form. We will be happy to answer your questions.