If you have just settled on a property in a new strata development, an invitation to the first Annual General Meeting (AGM) will arrive within a few weeks. For many owners this is their first encounter with strata governance, and the meeting pack can be daunting: it contains financial statements, a proposed budget, insurance documents, a strata management agreement, by-laws, and a long list of motions. This guide explains what is happening and why, walks through every standard agenda item, and tells you what to look for and what questions to ask.

What is the first AGM and why is it different?

Every strata scheme in NSW must hold an Annual General Meeting at least once each financial year. The first AGM is different from all those that follow because it is the moment the owners corporation formally takes control of the scheme from the developer.

The initial period and when the first AGM happens

Before the first AGM, the scheme is in what the Strata Schemes Management Act 2015 (NSW) calls the 'initial period.' This period ends when the total unit entitlement held by owners other than the developer reaches at least one-third of the aggregate unit entitlement for the whole scheme. In a building where many lots have already been sold at settlement, this threshold can be reached quickly. In a large development where sales are staged, the initial period may last many months.

Once the initial period ends, the developer (the 'original owner' in the Act's terminology) has 2 months to convene and hold the first AGM. The developer is legally required to give at least 14 days' notice of the meeting to every owner, mortgagee, and any registered tenant. If the developer fails to hold the first AGM in time, penalties of up to $11,000 apply, plus $220 for each day the breach continues under the 2025 reforms.

Who runs the first AGM?

The developer is responsible for setting the agenda and convening the meeting under Sections 14 and 15 of the Act. The agenda is not left to the developer's discretion: Section 15 prescribes a list of items that must be included, and the Strata Schemes Management Regulation 2016 adds further required items. In practice a first AGM agenda will typically run to 17 to 20 motions, most of which are legally required rather than optional.

In terms of who chairs the meeting: if a strata manager has been appointed during the initial period (which is common), that manager will typically organise the logistics and chair the proceedings. If no manager has been appointed, the developer or their representative chairs the meeting. This meeting is still largely in the developer's hands, which is why understanding your rights as a voter matters.

The developer's reduced voting power

For elections of the strata committee and the appointment of a strata managing agent at the first AGM, the Act reduces the voting power of the original owner if they own more than half the lots. An original owner who holds a majority of the unit entitlements cannot use all of those votes to control these elections. This protection exists specifically for the first AGM, and it means that ordinary owners have more meaningful influence at this meeting than the raw numbers might suggest.

Audience	Relevance	Why it matters
New apartment owners	Essential	The decisions made at this meeting directly affect your levies, the management of your building, and who represents you on the strata committee.
Investor owners who cannot attend	Very important	Appoint a proxy before the meeting so your interests are represented. Do not ignore the meeting pack.
Owner-occupiers attending for the first time	Essential	Consider nominating for the strata committee. The first committee sets the tone for the scheme.
Tenants	Helpful background	Tenants are not owners and cannot vote. Registered tenants may be notified and may have a tenant representative on the committee in some larger schemes.

The meeting pack: what to read before you go

The meeting notice must be sent at least 14 days before the meeting. Along with it you will receive a substantial package of documents. Understanding what is in it before the meeting is essential.

What the developer must provide before the first AGM

Under Section 16 of the Act, the developer must deliver the following documents to the owners corporation at least 14 days before the first AGM:

• All plans, specifications, occupation certificates, and other certificates relating to the land or any building
• Planning approvals, 'as built' drawings, compliance certificates, and fire safety certificates
• The certificate of title for the common property
• The strata roll (the register of all lot owners and their contact details)
• All notices and records relating to the strata scheme
• The initial maintenance schedule (required under the 2025 reforms for multi-storey schemes)
• All insurance documents obtained or received by the developer for the building
• Any contracts, warranties, and service agreements entered into on behalf of the scheme

The agenda item by item

The agenda for the first AGM is set by legislation. Section 15 of the Act specifies the items that must be included. Here is what each item means and what you need to know about it.

Agenda item	What it means and what happens
Motion 1: Confirm previous minutes	If any meeting was held during the initial period, its minutes are confirmed here. It is worth checking that the minutes accurately reflect what was decided.
Motion 2: Confirm or vary insurance	The developer will have taken out building insurance during the initial period. The first AGM confirms, varies, or extends that insurance. Key things to check: is the sum insured sufficient to cover the full cost of rebuilding the building? Has there been a recent valuation? Is the public liability cover at least $20 million as required by the Regulation?
Motion 3: Office bearers liability insurance	A separate motion under Section 165(2) of the Act asks whether the OC wants to take out Office Bearers Liability insurance (protecting committee members from personal claims for negligence) and Fidelity Guarantee insurance (protecting the OC if a committee member misappropriates funds). These are optional but most schemes pass this motion.
Motion 4: Appoint a strata managing agent	The first AGM formally decides whether to appoint a managing agent and on what terms. The proposed management agreement must be attached to the meeting notice. For appointments at the first AGM, the term is capped at 12 months under the Act. The developer's voting power is reduced for this election. Review the agreement carefully before the meeting, including the fee structure, exit provisions, and any commission disclosures.
Motion 5: Elect the strata committee	The strata committee is the governing body elected by all lot owners to manage the scheme between general meetings. The first AGM determines how many committee members there will be (between 1 and 9) and elects them. This is your opportunity to nominate yourself or another owner you trust. For this election, the developer's voting power is reduced. Note: committee elections cannot be decided by pre-meeting electronic vote — they must be decided at the meeting itself.
Motion 6: Tenant representative	Under Section 33 of the Act, this motion determines whether a tenant representative may be elected to sit on the strata committee. A tenant representative can attend committee meetings and raise tenancy-related matters but does not have voting rights.
Motion 7: Restricted matters	Some decisions are too significant for the committee to make on its own and must be reserved for a vote of all owners at a general meeting. This motion decides whether further restrictions should be imposed on what the committee can decide. The strata manager will usually recommend adopting the default restrictions provided by the Act.
Motion 8: Alter or add to by-laws	By-laws are the rules that govern behaviour and use of the building and common areas. This motion gives owners the opportunity to propose changes. Changing by-laws requires a special resolution (75% of votes cast at a general meeting). Review the proposed by-laws carefully for any provisions that seem unclear or unreasonable.
Motion 9: Electronic voting by-law (special resolution)	This motion (requiring at least 75% of votes cast in favour) asks the OC to formally adopt a by-law enabling pre-meeting electronic voting and electronic meetings. Without a by-law, the OC's ability to use electronic voting platforms at future meetings may be limited. If passed, the by-law must be registered at NSW Land Registry Services.
Motion 10: Accounting records	The developer must provide accounting records for the period since the strata plan was registered. This motion formally considers those records. If levies were struck and collected during the initial period, a full accounting of receipts and expenditure will be attached. Review these to understand the scheme's financial starting point and check for any unexplained expenses.
Motion 11: Proposed budget and levies	The developer sets an initial levy estimate based on the proposed budget. The first AGM decides whether to confirm or change it. Levies pay for the administrative fund (day-to-day expenses) and the capital works fund (long-term maintenance and replacement). An artificially low levy now means a special levy or shortfall later. Compare the proposed capital works fund contribution against the overall budget — if the ratio seems very low for a building with significant shared infrastructure, ask for justification. For larger apartment complexes from 1 April 2026, initial levy estimates must be independently certified by a Chartered Quantity Surveyor. If your first AGM is held on or after that date, ask to see the QS certification.
Motion 12: Appointment of an auditor	The OC must decide whether to appoint an auditor. For schemes with an annual budget greater than $250,000 or more than 100 lots, audit is mandatory under Section 95 of the Act. For smaller schemes it is optional but considered good governance.
Motion 13: Appointment of a building manager	Not all buildings have a building manager, but many larger developments do. This motion determines whether to appoint one and what functions they will carry out. Building managers handle day-to-day building operations, distinct from the strata manager.
Motion 14: Capital works fund assessment	The Act requires all OCs to prepare a 10-year forecast of capital works fund contributions. This motion decides who will carry out the assessment. The strata manager will recommend engaging a professional quantity surveyor or valuer. From 1 April 2026, all schemes must prepare the plan using a standard-form planner through Strata Hub.
Motion 15: Strata manager's commission report	Under Section 60 of the Act, the strata managing agent must report on any third-party commissions received during the year and expected commissions for the following 12 months. Since February 2025, this disclosure must be detailed and itemised for insurance. Review this report carefully.
Motion 16: Receipt of plans and specifications	Under Section 16 of the Act, the developer must provide all plans, specifications, occupation certificates, and other documents to the OC at least 14 days before the first AGM. This motion formally confirms that those documents have been received and now form part of the OC's records.
Motion 17: Initial maintenance schedule	Under Section 115 of the Act, the developer must provide an initial maintenance schedule to the OC setting out the obligations and costs relating to the maintenance of common property. Review it carefully — it provides the baseline for your scheme's ongoing maintenance obligations and informs the capital works fund plan. From 1 April 2026, the schedule must be prepared using a prescribed standard form and independently certified by a Chartered Quantity Surveyor.
Motion 18: Strata Hub	The Strata Schemes Management Amendment (Information Regulation 2021) requires certain information about the scheme to be lodged on the NSW Government's Strata Hub portal. This motion authorises the strata manager to submit that information on the OC's behalf, including the AGM date, occupation certificate date, fire safety statement details, insurance details, and emergency contacts.
Motion 19: Appointment of a building inspector (Part 11)	Part 11 of the Act establishes a building defect bond scheme for residential strata buildings. The developer lodges a bond (typically 2% of the contract price) with the NSW Government before an occupation certificate is issued. An independent building inspector is appointed to carry out two inspections: an interim inspection at around 15–18 months after the occupation certificate, and a final inspection at around 21 months. This motion asks the OC to approve the appointment. What happens at the first AGM is simply the OC giving consent to the process — inspection reports come significantly later. If the OC does not approve an inspector, NCAT can make the appointment. It is generally in the OC's interest to engage actively with this process.
Motion 20: Building defects and rectification	For schemes within their Home Building Act statutory warranty periods (6 years for major defects, 2 years for minor defects from the occupation certificate date), every AGM must include a motion to consider building defects and rectification. At the first AGM this means reviewing any initial building inspection report, noting any defects already identified, and deciding how they will be addressed. Note the occupation certificate date as the clock for warranty claims.

How voting works at the first AGM

Most decisions at the first AGM are made by ordinary resolution, meaning more than 50% of the votes cast. Some decisions require a higher threshold.

Types of resolutions

• Ordinary resolution: Simple majority of votes cast. Used for most decisions including levy amounts, strata committee elections, strata manager appointment, insurance, and building manager appointment.
• Special resolution: 75% majority of votes cast, measured by unit entitlement. Used for altering or adding to by-laws.
• Unanimous resolution: 100% of all lot owners must vote in favour. Used for very significant decisions like selling common property.

One vote per lot

Each owner has one vote for each lot they own. If you own two lots, you have two votes. If a lot is jointly owned, the owners together have one vote for that lot. For strata committee elections and the strata manager appointment, the developer's voting power is reduced at the first AGM.

Voting if you cannot attend

You can attend the meeting electronically if the OC or the developer has resolved to permit this. If you cannot attend at all, you should appoint a proxy in writing before the meeting. A proxy form will be included in the meeting notice. The proxy can be any person you choose, including a fellow owner, a relative, or your solicitor. For schemes of 100 lots or more, the completed proxy form must be provided to the secretary at least 24 hours before the meeting.

Financial status and voting rights

Only financial owners can vote. You are unfinancial if you have any unpaid levy contributions outstanding at the time the meeting notice was issued and you have not paid them in full before the meeting begins. At the first AGM, if the initial levies have been struck and you have not yet paid them, check your status before the meeting and pay any outstanding amounts to ensure you can vote.

What happens if there is no quorum?

A quorum requires at least one-quarter of owners entitled to vote to be present in person, by proxy, or by electronic means. Pre-meeting electronic voters count toward quorum. If no quorum is present within 30 minutes of the scheduled start time, the chairperson has two options: adjourn the meeting for at least 7 days, or declare that those present constitute a quorum and proceed. If an adjourned meeting is also inquorate after 30 minutes, those present automatically constitute a quorum and the meeting proceeds. This is why returning your proxy form even if you cannot attend in person matters: proxies count toward quorum.

What to watch for as a new owner

Artificially low levies

Some developers set initial levies below the realistic operating cost of the building in order to make units easier to sell. This creates a financial shortfall that emerges after the first AGM when the scheme takes stock of real costs. The result is either rising levies at subsequent AGMs or a special levy. At the first AGM, compare the proposed budget against the actual operating costs of similar buildings. Ask the strata manager to justify the key line items.

From 1 April 2026, initial levy estimates presented at the first AGM must be independently certified by a Chartered Quantity Surveyor. This reform directly targets developer-inflated low levies. If your first AGM is held on or after that date, the QS certification should be attached to the budget papers. If it is not, raise this at the meeting before the levy motion is voted on.

Underfunded capital works fund

Initial contributions to the capital works fund are sometimes set very low. A new building requires less capital expenditure in its early years, but a realistic 10-year plan will show significant expenditure down the track on items like lift replacement, painting, roof maintenance, and pool resurfacing. A quick sanity check: look at the capital works fund levy as a proportion of the total budget. If it is less than 10% of the total levy income for a building with significant shared infrastructure, ask why.

Long-term contracts entered during the initial period

Developers sometimes enter into long-term contracts on behalf of the OC during the initial period, such as building management agreements or embedded network utility supply contracts. The first AGM will include an item to review any utility supply agreements. From 1 July 2025, utility contracts entered into during the initial period expire at the first AGM unless owners vote to continue them. This is specifically designed to prevent developers from locking schemes into unfavourable long-term supply arrangements. Make sure you understand what contracts exist and whether continuing them is in the OC's interests.

How to participate effectively

Before the meeting

• Read every document in the meeting pack. If something is unclear, email the strata manager before the meeting and ask for an explanation.
• Check the levy figures: multiply the proposed quarterly levy by 4 to get the annual amount, then divide by the building's total unit entitlements to see the full-building cost. Does this seem sufficient?
• Consider nominating for the strata committee. You do not need any particular expertise, just a willingness to be involved. The first committee sets the culture for the scheme.
• If you cannot attend, complete and return your proxy form before the deadline.
• If you want to put a motion on the agenda, you needed to do this before the notice went out. If you have a concern, note it for the meeting's general business or for the second AGM.

At the meeting

• Arrive early enough to check in, confirm you are on the roll, and confirm your financial status.
• Ask questions on any item before the vote is taken. This is your right as an owner.
• If the meeting is being conducted electronically, ensure you know how to cast your vote on each motion before the meeting starts.
• If you have concerns about the strata management agreement, raise them before the motion is voted on. If the meeting passes the appointment and you later have concerns, your next formal opportunity is the second AGM.

After the meeting

• Minutes must be distributed within 14 days of the meeting. Check them carefully when they arrive — the minutes are the formal record of what was decided.
• Pay your first levy notice promptly once it arrives.
• Introduce yourself to the strata manager and, if you have been elected to the committee, to your fellow committee members.
• Save the building's contact details: the strata manager's emergency number, the building manager if there is one, and the Netstrata Owners Portal login if your building is managed by Netstrata.

Frequently asked questions

I didn't receive any notice of the first AGM. What should I do?

Contact the developer's strata manager immediately. The developer is legally required to give at least 14 days' written notice to every owner on the strata roll. If the meeting has already been held without proper notice being given to you, the resolutions passed at the meeting may be challengeable at NCAT.

The proposed levies look very low. Can I challenge them at the meeting?

Yes. The motion on levies asks the OC to confirm or vary the developer's proposed contribution amounts. You can move or support an amendment to increase the levy if the proposed budget does not appear realistic. The motion only requires an ordinary majority to pass. Come prepared with specific questions about why certain costs appear low and be ready to support an amendment with a more realistic figure if needed. For larger schemes ask to see the QS approved budget.

I want to be on the strata committee. What do I need to do?

Nominate yourself before or at the meeting. The meeting notice will include a call for nominations. You can make a nomination at the meeting itself if you have not done so in advance. You do not need any special qualifications. If there are more nominations than positions on the committee, a ballot is held. Being on the first committee is particularly valuable because you are involved in setting the standards and expectations for the building from day one.

What happens if not enough owners turn up and there is no quorum?

A quorum requires at least one-quarter of owners entitled to vote to be present in person, by proxy, or by pre-meeting electronic vote. If no quorum is present within 30 minutes of the scheduled start time, the chairperson must either adjourn the meeting for at least 7 days, or declare that those present constitute a quorum and the meeting proceeds. If the meeting is adjourned and still has no quorum after 30 minutes at the reconvened time, those who are present automatically constitute a quorum. This means a first AGM can almost always proceed eventually, even with low attendance.

After the first AGM, what happens next?

The strata committee will hold its first committee meeting relatively soon after the AGM to allocate officer roles (chairperson, secretary, and treasurer) among its members and set the agenda for the scheme's ongoing management. Levy notices will be issued to all owners. The strata manager will begin managing the scheme on a day-to-day basis in accordance with the management agreement. The next AGM must be held within 12 months. Between now and then, if significant issues arise that require owner approval, the strata committee can call an extraordinary general meeting.

Related reading

• Common property vs lot property: the definitive guide — learning.netstrata.com.au
• Insurance in strata schemes: coverage requirements and claims — learning.netstrata.com.au
• Meetings and voting: democratic processes and procedures — learning.netstrata.com.au