My Trustees are not signing the Financial Statements so that we can call the AGM for the Body Corporate. Can we call the AGM with unsigned financial statements?
There are different opinions on this –
So the AGM does not approve the financial statements they only consider it – the financial statements are approved and signed by the Trustees before calling the AGM.
The Auditor normally don’t sign the financial statements until the Trustees have approved and signed them.
And no owner applying for a bond can use financial statements of the scheme that are not signed.
The suggestion is therefor made not to call an AGM without signed financial statements. Practically it sometimes happens that the Trustees are not willing to sign the financials before it has been considered at the AGM by the owners – this is not ideal as you will have to then send unsigned financials to the owners with the notices of the AGM and then again send the signed financials to the owners after the AGM.
Quote from the STSM Act:
PMR 10.(1)No document signed on behalf of the body corporate is valid and binding unless it is signed on the authority of a trustee resolution by —
- two trustees or the managing agent, in the case of a clearance certificate issued by the body corporate in terms of section 1 5B(3)(0(aa) of the Sectional Titles Act; and
- two trustees or one trustee and the managing agent, in the case of any other document.
And also in terms of the Annual General Meeting (AGM) prescribed agenda
PMR 17
(6) The order of business at general meetings is as follows:
- if the meeting is an annual general meeting —
(v) consider the annual financial statements;