Explanatory Material

Standard Module section 73 stipulates the compulsory inclusion of explanatory material in the general meeting notice with the voting paper.  It is to be included in the form of a schedule and must only be in the approved form with the approved content as set out in section 73. If the committee wishes to provide additional explanatory material that is not provided for in section 73, this must be in a separate schedule. No other explanatory material may accompany a voting paper and a notice of meeting.

Explanatory material is any explanatory note provided by the submitter of the motion. The note must not be longer than 300 words. No other comment may be made except that provided by the submitter.  If the explanation is longer than 300 words it may be cut off after the 300th word.

Explanatory material must also be provided in the general meeting agenda for -

a motion with alternatives

a motion to change the regulation module applying to the scheme, explaining the effect of the proposed change.  There is an approved form for this change. See appendix O on page 151   

a motion to vary the term of management rights agreements. See appendix P on page 153

For the annual general meeting the explanatory schedule must state that budgets may be adjusted +/- 10% (Standard module section 140(1)). This provision gives some common sense flexibility for the meeting to discuss the budget and make amendments where appropriate, but at the same time limits the amount of the variation to give owners not present at the meeting some protection.