Annual General Meeting – the highest decision
At the Annual General Meeting, the shareholders decide on the most important issues for the company, such as the company consideration, the budget, significant adjustments and their financing. The Annual General Meeting decides on practically everything that affects one’s own housing, costs, comfort and ultimately the value of the property.
The Annual General Meeting also elects a Board of Directors for the company, whose important task is to take care of everyone’s property.
The Annual General Meeting decides on matters that belong to it under the Housing Companies Act. The articles of association may also prescribe other matters. Decisions shall be taken by a majority of the votes cast, unless otherwise provided by law or the articles of association.
The Annual General Meeting is held within six months of the end of the financial year. There may be more than one Annual General Meeting if the Articles of Association so provide. In addition to the actual meetings, additional general meetings are held if necessary.
No later than two weeks before the meeting, a notice of the Annual General Meeting will be sent to the shareholders, enclosing the material prepared by the Board of Directors and the Property Manager with their financial statements and repair project plans. Familiarize yourself with the material you received before the meeting, and it will be easier for you to present and justify your own position on the issues to be discussed.
Only by participating can you make an impact. Decisions made by the Annual General Meeting are valid regardless of whether you have been involved in making the decisions. The Annual General Meeting also provides information on the affairs of the housing association, while at the same time influencing what the housing association is like and how it is managed.
Articles of Association
Every housing company has articles of association (corporate rules). It is the internal law of the housing association. The Articles of Association state e.g.
- apartments, their area and purpose
- which facilities are controlled by which shares
- on what basis the shareholders pay the company
- whether and on what basis user charges, such as water charges, are levied
- number of board members
- number of general meetings
- matters to be discussed and decided at the general meeting.
In addition, the articles of association may contain e.g.
- an indication of the choice of auditors
- anomalous division of maintenance responsibilities
- redemption clause.
The amendment to the Articles of Association will be decided at the Annual General Meeting.