select
|

Simplify meetings held in sectional title schemes

The new Sectional Title Schemes Management Act (STSMA) came into effect on 7 October 2016. While this act repealed several provisions of the Sectional Titles Act of 1986 (STA), the one does not replace the other entirely, says Mandi Hanekom, operations manager of sectional title finance company Propell. 
 
The STSMA primarily deals with the management of sectional title schemes whereas the STA deals with the registration procedures of sectional title schemes.  There are new prescribed management and conduct rules which are applicable to all schemes, but any non-standard rules made previously by a scheme under the STA are still enforceable (as long as it is not in conflict with the new prescribed rules). 
 
In recent training workshops organised by Propell and run by sectional title specialist attorney Judith van der Walt, the onerous and time-consuming requirements for arranging and attending meetings were discussed. With proper planning, however, bodies corporate can deal with all relevant decisions at their annual general meeting (AGM) and would not have to call various meetings throughout the year, said Hanekom.  
 
The management rules prescribes the order of business at general meetings. Model agendas for AGM’s and special general meetings that comply with these requirements can be downloaded from Propell’s website at http://www.propell.co.za/sectional-title-finance/documentation.  
 
Bodies corporate should pay attention to some changes in the management rules in respect of establishing a quorum for a meeting, proxies and voting rights. Hanekom says it is important to distinguish between the concept of votes calculated in number (where each member present and voting has one vote) and votes calculated in value (where the value of each member’s vote is equal to the participation quota of all sections registered in that member’s name).
 
For schemes with less than four primary sections or less than four members, a quorum is present when at least two-thirds of the value of members’ votes is present, and for all other schemes the requirement is one third. Votes of the developer and body corporate itself is not taken into account.
 
The changes with regards to voting are that there is no need to second ordinary resolutions and that all ordinary resolutions are now approved by a majority, calculated in value. In the past, each owner had one vote per section owned, but this no longer applies. For special resolutions, at least 75% of votes of members, calculated both in value and in number, are required.
 
It must be remembered, too, that proxies are now limited to two per person. The proxy form should be handed in 48 hours before the meeting is to be held, or handed to the chairperson before the start of the meeting, so that everyone is aware of who is holding proxies and for whom.
 
“If trustees remember what needs to be done in terms of administration before each meeting as well as at the meeting, and if the attendees stick to the agenda, bodies corporate should be able to be deal with matters on the agenda efficiently, which will make attendance less onerous. It is vital for owners of sectional title units to at least attend their AGM so that they know what is happening in their scheme.  No one can complain about the way their scheme is run unless they have made an effort to understand and know what the trustees are dealing with,” said Hanekom


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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