Management of a body corporate – Part 2: Administrative management

This is the second article in a series of three articles, which deal with the management of a sectional title scheme. We first looked at the financial management of a body corporate, now we will be looking at the administrative management.

As explained in our first article, the functions and powers of the body corporate, as set out in sections 3, 4 and 5 of the Sectional Titles Schemes Management Act 8 of 2011 (“the STSMA”), are performed and exercised, in terms of section 7 of the STSMA, by the trustees of the body corporate, subject to any restriction imposed, or direction given by the members of the body corporate.

Rules

Within 10 days following the amendment of the body corporate’s conduct and / or management rules, the trustees must lodge the amended rules with the Community Schemes Ombud Service for review and approval, and keep a consolidated set of rules whenever they are amended.

The trustees must further compile and keep a complete set of all conduct and management rules, including:

  • an index; and
  • a prominent reference to any rules that confer rights of exclusive use, vary the effects of the participation quota or impose a financial or maintenance obligation on members.

Records

The trustees must keep and update, in written form or in a form that can be easily converted to writing, such as a spreadsheet, lists of trustees, members, tenants, sections, EUA’s, bondholders, and future development rights. The trustees must further obtain and keep copies of the scheme’s sectional plans, the STSMA, resolutions, contracts, insurance policies, budgets, annual financial statements, consents, correspondence, income tax returns, and decisions or orders of the CSOS or Court.

Within 10 days of a written request made by an owner, or a person authorised by an owner, the trustees must make these records and documents available for inspection, and copies, upon payment of a reasonable fee. In the instance of a request for rules, the rules must be provided within 5 days from the date of the written request.

Minutes

The trustees must keep and update, the minutes of trustee and general meetings, which must include the date, time and place of the meeting, the names and role of persons present, including proxies and other representatives, the text of all resolutions, and the results of voting on all motions.

Managing agent

The trustees may appoint a managing agent to perform specified financial, secretarial, administrative or other management services under the supervision of the trustees.

If you have any queries relating to this article and topic, feel free to contact the writer, Zerlinda van der Merwe, via email at consulting@paddocks.co.za or telephonically on 021 686 3950, for a no-obligation quotation for a consultation.


Article reference: Paddocks Press: Volume 13, Issue 11.

Zerlinda van der Merwe is an admitted Attorney of the High Court, specialist Sectional Title Attorney (BA, LLB, LLM), Zerlinda brings a wealth of experience and forms part of the Paddocks Private Consulting Division.

This article is published under the Creative Commons Attribution license.

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