A Block Management Company’s Annual Report
A company is required by law to publish an annual report and hold an annual meeting to discuss it.
The following information must be included in the report:
– Earnings and expenses
– Annual service charges – The sinking fund account – Budgeted maintenance and repair expenditures – Insurance coverage – Contracts signed by the company
The members must be notified of the meeting 21 days in advance.
The annual general meeting must be held near the multi-unit development unless 75 percent of the company’s members agree otherwise. This would be found in the company’s constitution, which is formally known as the memo and articles.
The accounts are filed with the company’s office and are available for public inspection. They are usually submitted in an abridged format, which means that some information is omitted, but as an OMC member, you are entitled to a copy. You are not entitled to them if you are a tenant.
Because of the COVID-19 pandemic, virtual general meetings have been permitted since August 2020. This clause was added to the Companies (Miscellaneous Provisions (Covid-19) Act 2020. It was originally scheduled to end on December 31, 2020, but it has been extended until December 31, 2021. This, in my opinion, should be extended indefinitely. It believes it is more inclusive and thus encourages more participation.
Annual Reports are required to be filed with the Companies Registration Office (CRO).