Quorum requirements according to the STSMA

When an annual general meeting (AGM) or special general meeting (SGM) is held in a sectional title scheme, there are certain guidelines that must be followed in order to meet the criteria as set out in the Sectional Title Schemes Management Act, which differ from the way the quorum was calculated in the past, says Michael Bauer, general manager of property management company IHFM. 
No business can be dealt with by the members of a sectional title scheme at either type of meeting unless a quorum is present, whether actually present or represented by a proxy, and under the new Act no person may hold more than two proxies, said Bauer. 
Regulation 19 states that the quorum for either AGM or SGM is calculated on the number of primary sections owned within the scheme.  If the scheme has fewer than four primary sections or members then the quorum needed will be two thirds of the value of the votes of all the members. If the scheme has more than four primary sections, then the quorum requirement is one third of the total value of the members in the scheme. 
There must be at least two people present at the meeting, unless all the sections are registered to one person and the developer’s or body corporate’s value cannot be taken into account when establishing whether a quorum is present. 
If there isn’t a quorum present after 30 minutes of the indicated time of the start of the meeting, then it would be adjourned to the same time and day of the following week, at the same venue. If a quorum is still not reached within 30 minutes at the following meeting, the meeting goes ahead regardless with the members who are in attendance.
There is one exception to the above, and that is if there is a special or unanimous resolution tabled for approval at the meeting in question. The required quorum is 33.3% in case of a special resolution and 80% in case of a unanimous resolution, calculated in number (actual number of members) and value of the votes (PQ) of all the members of the body corporate.
“It’s often very difficult to get members to attend meetings in sectional title schemes, and even though we always encourage owners to play an active role in the management, it is often left to the trustees to make major decisions.  If owners oppose something, they do have the power to try and challenge or prevent it from happening,” said Bauer.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 19 Jan 2018
      Extending from Randfontein in the west to Roodepoort in the east and including the towns of Krugersdorp and Magaliesburg, the West Rand has a plethora of property available to residents who choose to make this unique area their home.
    • 19 Jan 2018
      When it comes to financial planning, doing the work to ensure you’re prepared for unexpected emergencies is just as important as ticking off your other goals and New Year’s resolutions. The beginning of the year is also the perfect time to review your various insurance policies.
    • 19 Jan 2018
      No surprises at the first Monetary Policy Committee of 2018, as Reserve Bank Governor, Lesetja Kganyago, announced that the interest rates would stay at their current levels.
    • 18 Jan 2018
      The Southern Suburbs make up some of the most popular residential areas in Cape Town, comprising charming groups of suburbs which lie to the south-east of the slopes of Table Mountain. It is seen as the city's most expensive residential neighbourhoods with a choice of various private schools, upmarket eateries, wine estates, beautiful homes and trendy apartments.
    • 18 Jan 2018
      New year, new goals! If you’ve resolved to purchase your first property in 2018, then this 6-step guide from the Rawson Property Group is a must-read. It will help you navigate and simplify what is often be seen as a confusing process of buying your first home – right from the house-hunt to the house-warming.
    • 17 Jan 2018
      While the current property market may still favour buyers, it doesn’t mean that they shouldn’t be well prepared before putting in an offer to purchase.
    • 17 Jan 2018
      Lightstone lists Blair Atholl as the most expensive suburb with an average house price of R11.2 million, followed by Westcliff (R10.5 million), Dunkeld (R9.3 million), Sandhurst (R9.1 million) and Inanda (R7.2 million).
    • 17 Jan 2018
      As it currently stands, there are four main ways in which a home can be bought in South Africa, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, who adds that deciding in which legal entity to purchase the property is not a decision that should be entered into lightly, as each has its pros and cons.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us