How to conduct meetings at a sectional title scheme?

A Fitzanne Estates property agent noted that members of a Body Corporate must be aware of the Sectional Titles Schemes Management Act 8 of 2011 (“STSMA”) as it clearly outlines how meetings should be conducted.

“A Body Corporate is obliged to comply with the provisions of the STSMA and regulations. A notice period of at least 14 days’ written notice must be provided for an annual general meeting

A shorter period of 7 days’ written notice is allowed if the trustees find it necessary to provide shorter notice due to the urgency of a matter or where all members have agreed thereto in writing. At least 30 days’ written notice is required where a special or unanimous resolution has to be passed at the meeting.”

They also explained that a method of notice is where a special or unanimous resolution will be passed. The notice must be delivered by hand or by pre-paid registered post. In addition (not in substitution of the mentioned methods of delivery), a notice may also be provided by fax or email.

“A notice of a meeting, where only an ordinary resolution will be passed does not require notice by pre-paid registered post. Notice by normal post will suffice.”

For the meeting location, the general meeting must be convened within the local municipal area where the scheme is situated unless the members have by special resolution decided otherwise.

Quorum requirements for schemes with less than four primary sections must have two-thirds of the total votes in value and eligible to vote present. Schemes with four or more primary sections must have one-third of the total votes in value and eligible to vote present at the meeting to have a quorum present.

He also explained the voting rights, “members who are in arrears with their levy contributions or are breaching the rules of the Body Corporate, after a court or adjudicator has given a judgment, or ordered to pay the arrear contributions, or to comply with the rules of the Body Corporate, will not be entitled to vote at general meetings.

However, these members are still entitled to cast a vote when a special or unanimous resolution are considered. Proxies: a member may be represented either in person or by proxy at a meeting, provided that a person does not act as a proxy for more than two members.”

They also noted that failure to provide proper notice of a meeting does not invalidate decisions taken at such a meeting, if the Body Corporate made a reasonable attempt to give proper notice of such a meeting to all parties entitled to notice.

“It is important that trustees and members of a Body Corporate familiarise themselves with the requirements prescribed in the STSMA and regulations to ensure that a meeting is called and convened correctly,” they concluded.