How to fix a “dysfunctional” body corporate
It is often the case when transferring a sectional title unit that a body corporate is “dysfunctional”. The Sectional Title Management Act (STMA) makes it clear that a body corporate must be established, consisting of the developer (until he ceases to be an owner of a unit or real right to extend) and the owners of other units in the scheme.
As far back as 2005, the legislator has introduced a sanction in terms of which a developer can be imposed a fine or even imprisoned should he fail to convene a meeting within 60 days after establishment of the body corporate.
This, however, did not solve the problem, especially schemes where buildings have been abandoned and schemes with only 2 units (duet).
Where a body corporate has been established, but is dysfunctional, in that there are no longer appointed trustees, the following options are available:
- Any owner can request a special annual general meeting whereby new trustees are appointed.
- Any owner may apply to the court for the appointment of an administrator, who will then have the powers and duties of the body corporate or such powers as the court may direct.
- One can also obtain affidavits from all members of the body corporate that no monies due to the body corporate is due or payable and that the members are aware of their duties in terms of the Act.
This article is reproduced here with the kind permission of MC van der Berg Inc