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Sectional Title AGMs – What you need to know

The end of the financial year brings with it the Annual General Meetings of Sectional Title Schemes. Apart from being up-to-date with your levies to be able to vote, here are some facts you may not have known.

Living in a sectional title scheme can bring many benefits in the shared costs of space and various amenities, but it is up to the members (owners) of the scheme to actively be involved and take an interest in their asset and what is happening in the scheme.

One of the first things an owner should do is attend the Annual General Meeting which is usually held near to the end of each financial year, says Mandi Hanekom, operations manager for sectional title finance company Propell.

While attendance is important to know what is happening and to vote on changes to be implemented, if this is not possible, the owner must make sure that he appoints a proxy, which is allowed for in Management Rule 67. This must be done in writing and handed to the chairman prior to the meeting. It is only an owner or his proxy who can vote and tenants, while allowed to attend meetings, cannot vote.

It must also be remembered that if the unit is held in a trust, close corporation or company, that the person attending the meeting on its behalf holds a memorandum or minute authorising him to act on its behalf.

Any owner who is in arrears with his levies cannot vote at the AGM, and this will be checked against a roster at the meeting, so owners should be sure that they are in good-standing if they want their vote to count.

“If you are a member of a body corporate, it’s of utmost importance to take an interest in the finances of the scheme and to act in the interest of keeping it financially healthy. This would include allowing increases in levies if that is necessary and encouraging the practice of building up a reserve fund for maintenance and improvements to the scheme,” said Hanekom.

Whether the scheme has two or two hundred units, the rules stipulated in the Sectional Titles Act and Prescribed Management Rules apply. In all cases, an AGM must be held and minuted, the minutes must be in a minute book, and all the rules surrounding these meetings must be adhered to or decisions made there can be challenged and seen as void, she said.


Review overview
  • Arron 22nd March 2016

    If the PMR are not followed, i.e. no audited financial statements were distributed or tabled at an AGM, what recourse does an owner have who has pointed this out to the Trustees, but they chose to go ahead anyway?