Owners' meeting — procedure, tasks, quorum
What is an owners' meeting? - The definition
One Owners meeting is a meeting of all condominium owners of a building and takes place at least once a year. People who purchase condominiums (residential property) not only own a share of the building itself, but also become part of the Owners association. This community meets regularly to discuss decisions that affect common parts of the property. This includes topics such as house rules, maintenance measures and dealing with joint costs.
Since the owners' association is responsible for all measures taken in common ownership, the decisions made in the meeting must be supported by all owners — including those who are not present. The owners' meeting therefore represents an important platform for managing and coordinating common interests.
What is discussed at an owners' meeting?
The agenda items of an owners' meeting vary depending on the condition and needs of the property as well as the concerns of the owners' association. Common topics include:
- Rules and house rules: Adjustments to house rules or definition of new rules for living together.
- Renewal fund: Discussion and possible adjustment of the renewal fund, which is intended for future maintenance and modernization.
- Maintenance and modernization measures: Decisions on repairs and renovations affecting the common parts of the building.
- Structural changes: Voting on structural interventions that could change the structure or use of the building.
In addition, the audit and approval of the annual business plan and the annual accounts of the administration is part of Owners meeting. This statement documents the income and expenditure of the past year and provides information on whether the original economic plan was realistic.
Responsibilities and powers of the owners' association
In Switzerland, the owners' association has numerous tasks and powers, which are regulated in the Swiss Civil Code (Art. 712m ZGB). These include:
- Appointment of an administrator: The community elects an administrator who is responsible for managing the property. He is responsible for convening the meeting and implementing the measures adopted.
- Election of a board of directors: The Community may elect a committee to assist in taking on administrative tasks.
- Renewal fund: Decision on the amount and use of a renewal fund to finance maintenance and renovation work.
- Investments and cost allocation: Decisions on major investments, such as approving cost estimates, sharing costs among owners, and managing insurance premiums.
When does an owners' meeting have a quorum?
For the resolutions of an owners' meeting to be valid and legally binding, the Quorum be given. At the beginning of the meeting, the administrator checks whether the attendance requirement has been met. Loud Art. 712p ZGB Is an owners' meeting considered to have a quorum if at least 50% of condominium owners (at least two) and a third of the total ratings are present. If the meeting does not have a quorum, it will be postponed for at least ten days. A second meeting already has a quorum when a third of the owners are present. For the resolutions of an owners' meeting to be valid and legally binding, the Quorum be given. At the beginning of the meeting, the administration checks whether the attendance requirement has been met. Loud Art. 712p ZGB Is an owners' meeting considered to have a quorum if at least 50% of condominium owners (at least two) and a third of the total ratings are present. If the meeting does not have a quorum, it will be postponed for at least ten days. A second meeting already has a quorum when a third of the owners are present.
Specific provisions may be made in the condominium regulations that deviate from these legal requirements. This means that owners can define other quorums or procedures for decision-making in their regulations, as long as these regulations are in line with the general legal framework and are adopted by the meeting.
A detailed study of the condominium regulations before buying a condominium unit is therefore essential!
Is a majority vote sufficient?
The type of majority required depends on the significance of the decisions to be taken. There are three different decision-making mechanisms:
- Simple majority: For most regular decisions, such as hiring a cleaning company or minor repairs, a simple majority is sufficient. Example: In a community of nine owners, five of whom are present, the consent of three present is sufficient.
- Qualified majority: A qualified majority is required for more significant decisions that require greater financial costs (e.g. modifications or installation of a new heating system). What qualifies depends on the condominium regulations.
Example: With five people present in a group of nine owners, a minimum of three votes and a majority of the ownership shares are required. - unanimity: Unanimous decisions are needed for particularly far-reaching measures that have significant effects on the Community (e.g. cost-intensive modernization). All owners must be present here or be represented.
Procedure of an owners' meeting
In accordance Art. 712n ZGB The owners' meeting is convened by the administration at least once a year. In addition, it can take place if at least a fifth of the owners so request. The administration invites the owners to the meeting in writing and submits an invitation agenda list (agenda) at. Offers for planned work can also be delivered in advance.
There is no statutory invitation period, but a preparation period of around two weeks is recommended to give owners enough time to prepare for the agenda. The process provides that all agenda items are discussed and the decisions are recorded, with the administrator receiving the minutes for storage.
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