General Meeting of Co-owners: How Does It Work?
Our real estate agency in Paris's 16th arrondissement, our CENTURY 21 Auteuil Immobilier and Auteuil Seine offices will explain the process and key issues involved in the general meeting of co-owners.
What is a general meeting of co-owners?
The General Meeting (GM) is the decision-making body of the condominium. It convenes a meeting of all co-owners at least once a year, whether they are occupants or lenders. Decisions are made by vote in the form of resolutions: maintenance work, approval of financial statements, election of the property manager, amendments to the condominium bylaws, selection of service providers, etc.
There are two types of general meetings:
- The annual general meeting, which must be held once a year;
- An extraordinary general meeting, held when an urgent decision must be made (unforeseen repairs, damage, compliance issues, etc.).
Who organizes and convenes the general meeting of co-owners?
In principle, the property manager is responsible for convening the general meeting. The property manager must send a notice of the meeting to each co-owner at least 21 days before the meeting, by certified mail, in person, or electronically (if the co-owner agrees).
The homeowners' association board, or a group of co-owners representing at least one-quarter of the votes, may also request that a general meeting be held.
The notice must always specify:
- The date and time of the meeting;
- The location;
- Agenda;
- The necessary documents (quotes, financial statements, draft contracts, etc.);
- A mail-in ballot.
How is the agenda for the general meeting set?
The agenda is prepared by the property manager in collaboration with the homeowners’ association board. It lists all the decisions that will be put to a vote: construction projects, budgets, contracts, legal matters, and the election of the property manager.
Any co-owner may request that an item be added to the agenda, provided that the request is made well in advance of the mailing of the notice of meeting.
Good to Know : Only items on the agenda may be put to a vote. Items not on the agenda may be discussed at the end of the meeting, but may not be put to a vote.
How does a general meeting of co-owners take place?
The Annual General Meeting may be held:
- In-person;
- Via videoconference;
- Via conference call;
- Through any means of communication approved by a previous general meeting.
Upon arrival, each co-owner signs the attendance sheet. This sheet lists the owner’s name, ownership percentage, and method of participation (in person, by proxy, or by absentee ballot). It must be attached to the minutes and approved by the chair of the meeting.
At the beginning of the meeting, the co-owners shall appoint:
- A chairperson (who must be a co-owner);
- A secretary (usually the property manager);
- Sometimes one or more election officials.
The building manager may neither preside over the meeting nor be authorized to represent a co-owner. Next, the resolutions are addressed one by one, in the order specified in the notice of meeting.
How does voting take place at a general meeting of co-owners?
Each co-owner has a number of votes proportional to their share, that is, to their proportionate share of the common areas. Voting may take place by a show of hands, in writing, or using the mail-in ballot form. Decisions are then adopted based on different majority thresholds:
- Simple majority (Article 24) : used for day-to-day management decisions, such as building maintenance, minor repairs, or insurance matters.
- Absolute majority (Article 25) : required for major decisions, including the appointment of the property manager, certain improvement projects, or measures aimed at reducing energy consumption. If this majority is not reached but at least one-third of the votes have been obtained, a second vote may be held by a simple majority.
- Double majority (Article 26) : required for major decisions such as the sale or purchase of common areas, or amendments to the condominium bylaws.
- Unanimity : required for the most significant changes, such as modifying the allocation of expenses, the removal of a community facility, or taking out a loan in the name of the homeowners’ association.
Good to Know : When a co-owner holds more than half of the votes, the number of votes that co-owner holds is automatically limited to the total number of votes held by all other co-owners combined, in order to prevent excessive dominance during voting.
