You can call EGM for elections
you should not extend the duration of current association
once the term ends present committee becomes functus officio and cannot take any major decisions
Regarding Apartment owners association election
Hi, I stay in a new Apartment registered under Karnataka Apartment Ownership Act, 1972. Builder has got the DoD registered, and Bye-laws regarding Elections for apartment ownership association is outlined in that. As per the Bye-laws, the election of office bearers is supposed to happen in the Annual General Body meeting, and in the same meeting the finance (income/expense) report has to be approved for preceeding year, and auditor has to be appointed for the next year. The Bye-laws also mention that the elected office bearers will hold the office for 1 year. From the AGBM they are elected in to the next AGBM. Since this is a new apartment - about 2.5 years old, Builder got the first association formed by calling for elections. There were only one nomination for each post, so no election was conducted and the office bearers got elected. Builder mentioned that the office bearers will hold office for 2 years, while the Bye-laws mentioned 1 year. Anyways... now we are planning to get the election conducted, as its been 2 years (in December) when the first association was elected. But we are now in confusion whether what is the right time for the election. Is that supposed to happen after the financial year closure like in April, or the association should have considered the year for all income expense from their appointment date? Because of this ignorance, current association is ok to call AGBM to conduct elections, but the financial report would happen only after few months after audit is completed. So my question is... when Bye laws mentions election to happen in AGBM, and in AGBM we should have financial closures as well... is it ok to call AGBM only for election? Or should the duration for the current association be extended till the AGBM is called with financial closure and ready to appoint auditor for next year.
Asked 2 years ago in Property Law
Religion: Hindu
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8 Answers
Existing Bye laws has following: 2.19 “ OFFICE BEARER” shall mean the Members elected at any annual general body meeting , and these Office Bearers shall constitute the Board of the Association 14. ANNUAL MEETING: The first Annual Meeting of the Association, in case it is formed, shall be held within 6 months of the first Wings/s in the Project having received occupation certificate/partial occupancy certificate or 12 months from the date of Registration of this Declaration, whichever is later. Thereafter the Annual Meetings of the Association shall be held at the end of every 12 months from the preceding , Annual Meeting, for succeeding year. At such meetings, Board of Office Bearers shall be elected by ballot of the Apartment Owners , in accordance with the requirement of these Bye-Laws. The Apartment Owners may also transact such other business of the Association as may properly come before them. They shall also take all necessary steps for effective management of all the Wings in the Project and the Common Areas, Amenities and Facilities. The Owners shall review the work of the Board and take such action as may be necessary for the efficient working of the Board . They shall also appoint an Auditor for the year, to audit the accounts of the Association and fix the remuneration of the Auditor. So... what is EGM - can that be called Annual General meeting for election. If so.. what about the other point in the Bye-laws which says Auditor has to be appointed for the year. How will we achieve that when current year's finances are not reviewed and closed? As per Bye-laws the association should have been for 1 year, but the builder probably by mistake mentioned that the association would be for 2 years. Is that a violation of Bye-laws from builder? If Bye-laws mentioned AGBM for election and financial report and auditor appointment... does that need to happen together. If not... is the special EGM ok to conduct now and AGM later
Asked 2 years ago
1) at end of every financial year April to March you have to get accounts audited call for AGM to approve audited accounts ,to appoint auditor ,to ekect MC
2) in present case if AGM has not be called for you have to seek extension of time from registrar to hold AGM
3) EGM is extraordinary general meeting
4) call for AGM now to approve audited accounts for period April 2022 to March 2023 ,elect MC etc
It can’t be further extended for AGBM. It’s illegal and not in consonance with the Act
The annual general body meeting for election and all other issues are to be conducted when the tenure of the current office bearers comes to an end.
The audited reports till the date of the meeting can be obtained from the auditor.
The discussion about the income and expenses as provided by the auditor and also the decision about other major aspects can happen only in the annual general body meeting.
Therefore it is pertinent that the ADM should be conducted within the stipulated time
EGM means extra ordinary meeting, it can also decide the major issues by passing a resolution by the majority members.
The election to the office bearers can be done as stated in the bylaws at least henceforth.
The audited accounts of the financial year that concluded and the accounts pertaining till the period the AGM is being held should be submitted before the general body in the meeting
So in our case, would below be the right way to go forward. - Ask current association to get the accounts audited till date, and call for the AGM considering when the audit may complete (lets say couple of weeks or month). - Call for the AGM after the audit is complete, and share the same, conduct the election in the same AGM, and appoint the auditor for the next year - AGM to AGM period. This means that the financial year in apartment society does not need to align with the financial calender followed in general like April to March. So... we may request AGM to be called around mid December with audited account till November 2023, get the new board of office bearers elected in that. Does this appear to be a right way to go, or any other suggestions! Conducting an AGM only for Election (by calling it EGM - for which there is no mention in our Bye-laws)... is that something OK to do as well? In that case how do we go about the AGM and audit of accounts. Who manages the association for all major expenses after the EGM and new office bearer election.
Asked 2 years ago
Audited accounts are for each financial year . Get audited accounts from last April 2022 to March 2023
2) apply to registrar for extension of time for holding AGM as audited accounts are not ready and for holding elections
3) you cannot take any major decisions are your term of office has come to an end
The AGM can be held in the name of EGM also for the purpose of conducting election to the new office bearers upon expiration of the tenure of the previous office bearers.
The audited reports till the end of the previous financial year and an interim report from the beginning of the current financial year till the date of this meeting/election may also be submitted before the AGM on the date of meeting so that it can be discussed and accepted by a resolution passed in the general body meeting.
Remember that the notification to the ensuing election is to be given as per the existing bylaws.
Dear client,
1. Term of Office Bearers: The Bye-laws seem to state that office bearers are elected at the Annual General Body Meeting (AGM) and hold office for one year. If the builder mistakenly mentioned a two-year term, this might be a discrepancy that needs clarification.
2. Annual General Body Meeting (AGM): The AGM is usually conducted annually, and it's a platform for various activities such as electing office bearers, approving financial reports, appointing auditors, etc.
3. Calling an Extraordinary General Meeting (EGM): An EGM is a meeting called outside of the regular AGM schedule to address specific matters. It is not typically meant for routine elections but can be used for critical matters that require urgent attention.
4. Financial Year and Audit: The financial year of the association should align with what is mentioned in the Bye-laws. If there's a discrepancy, it may need clarification through legal channels. Auditing typically follows the financial year, and audited accounts are presented at the AGM.
Given your situation, here are some suggestions:
Seek clarification on the term of office bearers. If the Bye-laws clearly state one year and the builder's document mentions two years, consult with a legal expert to determine the correct term. If possible, aim to align the AGM with the end of the financial year, allowing for the presentation of audited accounts. This may involve auditing the accounts before the AGM, even if it means a delay. Keep all members informed about the process, the reasons for any deviations from the Bye-laws, and the steps being taken to rectify any discrepancies.
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