The general assembly of unit owners is the highest decision-making body of an apartment building or residential compound. Budget approval, election of the manager and common-area decisions are all made here. A resolution passed by an assembly that was not properly convened, however, risks being annulled. In this article we walk through the rules of the meeting step by step.
When is it collected?
The general assembly of unit owners meets at the times specified in the management plan, but not less than once a year. If no such time is specified in the management plan, it meets within the first month of each calendar year (KMK Art. 29).
In multi-building complexes, boards meet at the times set out in the management plan, but no less than once every two years; if no such time is specified, they meet within the first month of the second calendar year.
Extraordinary meeting
If an important reason arises, the assembly may convene at any time upon the request of the manager, the auditor or one third of the unit owners. For this, a notice to be signed by all unit owners or a registered letter must be sent at least fifteen days before the meeting date, stating the reason for the meeting.
Meeting and decision quorum
This is the most commonly confused point:
| Meeting quorum | Decision quorum | |
|---|---|---|
| First meeting | More than half of the unit owners in terms of both number and land share | Majority vote |
| Second meeting | No quorum required | Absolute majority of those present |
If the first meeting cannot be held because a quorum is not reached, the second meeting is held no later than fifteen days later. When the first notice is issued, the place and date of the second meeting are also stated in case a quorum is not reached. The interval between the first and second meeting may not be less than seven days.
Note: the law reserves special quorums for certain decisions. For example, renovations and additions to common areas require a decision passed by a majority of unit owners in both number and land share.
Voting rights and proxy
Every unit owner has one single vote, regardless of their land share ratio. A unit owner who owns more than one independent unit in the main property has a separate vote for each independent unit; however, regardless of the number of independent units, the number of votes they may hold cannot exceed one third of all votes.
There are two limits on representation by proxy:
- No person may be appointed as a proxy to exercise more than five percent of the votes.
- In properties with forty or fewer units, one person may hold proxy for a maximum of two people.
A unit owner directly affected by the decision may attend the meeting but may not vote.
Decision book
There is a formal requirement for decisions to be valid. Resolutions of the general assembly of unit owners are recorded in a book with sequentially numbered pages, each page certified with a notary seal, and signed by all unit owners present at the meeting. Those who vote against a resolution sign while stating the reason for their dissent (KMK Art. 32).
The decision book is not just a formality: in future disputes and enforcement proceedings, it is your strongest piece of evidence.
Pre-meeting checklist
- Was the notice period observed, and were the venue and date of the second meeting stated in the notice?
- Is the current unit owner list and are the land shares ready?
- Was the agenda notified in writing?
- Are the income–expense report and auditor's report for the previous period ready?
- Is the draft for the new period's operating project ready?
- Are the powers of attorney duly executed, and are the limits of the proxy not exceeded?
- Is the decision book and signature page ready?
This article is for general information purposes. In specific disputes, your management plan and legal advice are essential.