select
|

Sectional Title: Check voting rights of attendees at the AGM

When it comes to voting time at the AGM of a sectional title scheme, the trustees must be sure that all those who are voting do in fact have the right to vote, says Michael Bauer, general manager of the property management company IHFM. This is to avoid situations where decisions are made and resolutions passed but it is found later that many of the people who voted did not do so legally. 
 
The trustees should check the ownership of units and have an updated attendance register from the Deeds Office before each general meeting.  The other thing trustees need to establish is how each section is owned and work out the PQ factor for each section before the meeting in order to work out their voting rights. 
 
The types of ownership could be natural persons (if a husband and wife is married in community of property, they each have a 50/50 vote) and may have a joint vote or juristic persons, in which case the person who is present to vote must have sent through signed proxy forms and a resolution from the trust or company stipulating which person is voting on the trust or company’s behalf.  This must be done at least 48 hours before the AGM is due to take place, says Bauer.
 
When the day of the AGM arrives, those who attend must bring their identity documents as this should be checked against the attendance register to be sure that those voting are entitled to vote.
 
Owners who are nominating proxies must send the signed form with the person holding the proxy and that person must also have his ID with him. 
 
If a husband is attending but his wife does not attend, she must sign a proxy form to state that the husband is voting on her behalf. 
 
PMR 64, which covers who is not allowed to vote, says that those who have not paid their levies up to date can attend the meeting but they will not be able to vote.
 
To ensure the voting process goes smoothly, each owner should be given a voting card when they arrive, which has their section number on it.  These cards should be numbered and recorded on the attendance register so the chairperson knows who is voting and that their votes are legitimate. 
 
If these simple steps are followed then the AGM will be run efficiently and all decisions made there will be legal. 
 
There are still unlimited proxies allowed at AGMs, this ruling has not changed as yet, so it is very important to check that these are valid.  In many cases it is a letting agent who represents his/her clients and that agent can end up holding a vast quantity of votes, which can be a problem if he is voting in his own interests, says Bauer.
 


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 16 Jan 2018
      The start of the new year is symbolic of new beginnings. A good time to take stock of one’s possessions as well as how necessary they actually are. However, seeing as the process may appear daunting – a plan goes a long way.
    • 16 Jan 2018
      The Western Cape is still in the throes of a severe drought and many households have to adjust the way they use and save water. It is a little more complicated in sectional title schemes, however, as it is not that easy to implement grey water systems for multiple users and it is also difficult to monitor water usage accurately if there are no separate water meters
    • 15 Jan 2018
      In ideal rental situations, when a lease is signed the tenant will stay for the full duration of his lease without any complications and the landlord will uphold his obligations, creating a win-win situation for tenant and landlord.
    • 15 Jan 2018
      The Atlantic Seaboard’s housing market has stoically withstood the brunt of the growing economic and political instability, consistently achieving double digit growth way above the national average, however, in 2017 South Africa’s most resilient market finally began to yield to the pressure.
    • 15 Jan 2018
      Sectional title insurance can be a little confusing and, as a new owner, you may be tempted to just assume your body corporate has you covered. While this may be the case, understanding the extent of your coverage and your personal liability is the only guaranteed way to protect yourself against potentially costly oversights.
    • 12 Jan 2018
      After an exceptionally good 2016 during which the Winelands residential market outperformed the national average by a considerable margin, 2017 was marked by a difficult winter which saw a notable slump in sales and demand.
    • 12 Jan 2018
      Small spaces can make a big impact. Irrespective of size, an aesthetically pleasing outdoor space can be a major selling point for prospective buyers. “Even if the outdoor area is small and only enough to sit and have a cup of coffee, it might just be the feature that makes the stand out from others in the neighbourhood,” says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 12 Jan 2018
      The boom of the digital age has opened up many doors to the way we buy and sell property. In the past we used to pop out and pick up the latest copy of the property magazines available, today we switch on the PC or grab our smart phones as online property portals & Facebook has become the new ‘go-to’ for anything, including shopping for your new home from the comfort of your couch.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK