Special General Meetings, frequently referred to as “SGM”s, are special meetings where strata corporation owners vote on matters that require their approval. A Special General Meeting is similar to an Annual General Meeting.
Under the Strata Property Act, there are two ways that a Special General Meeting is normally called.
- Called by Strata Corporation under section 42
The strata council may call a Special General Meeting at any time as long as the appropriate notice is given to owners.
- Called by Owners under section 43
Persons holder at least 20% of the strata corporation’s vote may, but written demand, require the strata corporation to hold a Special General Meeting.
Where the owners demand a Special General Meeting under section 43:
- The demand must be signed by each of the persons making it;
- The meeting must be held within 4 weeks of delivery of the demand to the strata corporation (unless notice is waived by all owners);
- The meeting may be called by the president of the strata corporation without holding a strata council meeting;
- If the meeting is not held within the required timeline (4 weeks), the persons making the demand may call the Special General Meeting as long as they comply with the notice requirements in the Strata Property Act;
- The requested resolution contained in the demand must be the first item on the meeting agenda.
Many strata corporation decisions require the approval of owners and it is common for a strata corporation to call Special General Meetings to approve expenditures and repairs when the next Annual General Meeting is not conveniently timed.
Demanding a Special General Meeting under section 43 of the Strata Property Act is a powerful tool for owners. Almost any matter can be raised, whether it is a vote on the removal of strata council, a change in course on a repair or funding decision.
Given the diversity of interests between owners, the 20% threshold ensures that a sufficient number of owners share a common concern and wish to raise an issue for a vote of all owners. If an owner is not able to marshall the minimum 20% threshold to call a Special General Meeting, this is frequently a sign that there is not sufficient support of an owner’s position or belief on an issue.