Annual general meeting of Condominium (AGMC)
IMPORTANT – Owners vote with their shares. Each owner owns a % of common area space in the building represented by a number of shares, the number depends on the size of the unit, meaning; an owner with a larger property has more shares than someone with a smaller unit. For decisions to be legal, owners must vote in accordance with the following rules as per the Condominium Management Act. 2011 (Bulgarian legislation).
- Condominium: The individual properties and their shared common areas along with the land upon which they sit
- Quorum: Is the minimum number of members of a deliberative assembly
- Shares: The number of shares you hold can be found on your Title Deed
- A.G.M.: An Annual General Meeting held in relation to the management & maintenance of the building
- Managing Board: An odd number of members with no less than 3 owners or users of the building
Who is in control?
The owners. They can and are not limited to:
- Adopt and amend the rules of the internal order
- Elect and dismiss members of the Managing board: chairman, treasurer & secretary
- Adopt an annual budget of revenues and expenditures
- Approve the annual reports of the Managing board and the control board
- Determine the amount of cash contributions to fund “Repair and renovation”
Managing Board (manager):
The executive authority of the condominium is the managing board. The managing board (manager) is elected for two years and can include owners or users in the complex.
Who can call an AGM?
A General Meeting may be convened by any owner in an emergency or when there has been more than a year since the last General Meeting.
A General Meeting may be convened by any user of the building in an emergency or when there has been more than a year since the last General Meeting. A “user” is not a tenant or other person who simply lives in the apartment, but someone with the formal “Right of Use” (similar to leasehold in UK, the Right of Use is established by a notary deed and not lease contract).
Owners with 20 % of the total shares
The General Meeting may also be convened at the written request of owners who have at least 20% shares of the common areas. The request is addressed to the Managing board, which convene the general meeting within 10 days of receipt.
Managing Board (manager)
Once elected by the owners, the Managing Board is one of four authorities than can call an AGM or EGM, exclusive of any request from the owners.
Control Board (the controller)
It’s not mandatory to have a controlling board. It controls the activity of the Managing Board, reporting on their activity in relation to the decisions made by the owners.
How do you initiate an AGM?
Invitation on the door of the building:
An Annual General Meeting is convened by invitation. A notice with the date, time and location, signed by the person who convened the general assembly is placed in a prominent and accessible place at the entrance of the building no later than 7 days before the meeting date and in urgent cases, not later than 24 hours.
Via e-mail or over the phone:
An owner or user, who is not occupying the unit for more than one month, should notify the manager or chairman of the board, stating an e-mail address or a phone number at which they can be reached for notice of a General Meeting.
A verbal notification informing of the content of the invitation is permitted and such cases are stated at the General Meeting.
Who can vote at an AGM?
An owner or a member of the household:
An owner or user who can not participate in the General Meeting may authorize an adult member of his household, which is written into the list of inhabitants in the condominium, or another owner, to represent him. The authorization may be made verbally at the present or a previous session of the General Meeting, which is reflected in the minutes of the meeting or in writing.
Proxy – any other person including a solicitor
An owner or user may authorize in writing another person to represent him with a notarized signature. One person can represent no more than three owners and / or users.
How many individuals are needed?
Owners with 67% of the total shares
A General Assembly shall take place at the designated time and place only if owners or representatives of at least 67 per cent shares of the common areas of condominiums are at present.
Owners with 33% to 67% of the total shares
If the meeting can not be held in the specified time due to lack of quorum, the meeting shall be postponed for one hour and conducted as per the pre-announced agenda and considered legitimate only if there are present owners possessing not less than 33% of the shares of the common areas of condominiums.
Owners with less than 33% of the total shares
In the cases of lack of the required quorum as stated above, the meeting shall be held the following working day, at a time and place as specified in the invitation for convening the general meeting and the meeting shall be considered legitimate no matter how many shares of the common areas of condominiums are present. There are no limitations here. Under the new provisions and amendments there is no court practice, it’s understood that one person is enough.
How are decisions made?
Owners with 100% of the total shares:
Can take action to make extensions, establish entitlement or right to build and change the use of common parts.
Owners with 75% of the total shares:
Can remove an owner or user from the building for a specified period not exceeding three years; obtaining loans ; remission of financial obligations, as well as postponement or rescheduling of their performance; renewal of a major repair and absorption of EU or state funds or municipal budget or other sources of funding.
Owners with 67 % of the total shares:
Can place advertising or technical facilities of the building for connecting the building to heat, water, electricity and gas network and terminating the heat and gas in the condominium.
Owners with 50 % of the REPRESENTED shares:
Except the above cases, decisions are taken by majority vote with more than 50 percent (51%) of the represented shares of the common areas of condominiums. In extreem cases, when as few as 2 owners turn up for the AGM, one with a studio and the other with a 1 bedroom apartment (of greater number of shares), they can vote and adopt “necessary” and urgent needs of the building if in agreement with each other, or by the owner who holds the greater number of shares. This includes setting the budget.
What is discussed?
- Elect members of the Managing board: chairman, treasurer & secretary
- Define the service requirements
- Decide the annual budget
- Decide facility management fee
- Accept rules for the internal order