By Jennifer Paddock
Jennifer_Paddock
Owner meetingsThe right to vote is one of the normal consequences of membership of an association. An owner of a unit in a sectional title scheme is automatically a member of the body corporate and will usually have the right to vote at all of its general meetings either personally, by proxy or through another legally recognised representative.

However an owner’s right to vote at general meetings may be limited by prescribed management rule (“PMR”) 64 in certain circumstances. It provides that an owner may not vote for ordinary resolutions at general meetings if:1. Any contributions payable by him in respect of his unit have not been paid, and/or
2. He has persisted in breach of any of the conduct rules applicable to the scheme despite having received written warning from the trustees or the managing agent to refrain from such breach.

STO

Therefore an owner hit by the provisions summarised in 1 or 2 may not cast a vote for ordinary resolutions at general meetings. However it is important to note the following:

  • Such an owner can still vote for any special or unanimous resolution; and
  • That owner’s bondholder is still entitled to vote as his proxy in respect of ordinary resolutions while he is disqualified.

PMR 64 is the only provision in the Sectional Titles Act, 1986, (“the Act”) and prescribed rules that in any way limits an owner’s right to vote at general meetings. There is a common misconception that owners should recuse themselves from voting when they have a personal interest in the outcome of a body corporate vote. This is not the case. There are many situations in the sectional title context where the outcome of votes does directly affect the proprietary and other interests of the owners concerned and in these instances there is no expectation in the Act or the prescribed rules that owners should recuse themselves from the voting simply because they will be affected by the outcome.

Trustee meetings

In the context of trustee meetings, PMR 15(5) provides that owners are entitled to attend and speak but are not, in their capacity as owners, entitled to vote at these meetings.

The prescribed rules also contain a provision that can operate to disqualify trustees from voting at trustee meetings. PMR 23 provides that if a trustee has any interest in a contract or proposed contract, or in any litigation or proposed litigation, with the body corporate, he may not vote in respect of a decision relevant to that contract or litigation.

Article reference: Paddocks Press: Volume 5, Issue 7, Page 4
Jennifer Paddock is a sectional title expert. Click here to see the schedule of training courses, or for free sectional title advice go to www.sto.co.za.

This article is published under the Creative Commons Attribution license.  

5 Comments.

  • Jill Herbst
    29/10/2018 13:09

    Interesting. Can a married couple who are both elected Trustees both vote in trustee meetings, ie 2 votes from one unit?

    • Paddocks
      02/11/2018 09:00

      Hi Jill,

      Thank you for your comment. We would love to help, however we do not give free advice. Here’s how we can help:

      – We offer a 1-week Free Basics of Sectional Title short course.
      – We offer consulting via telephone for R490 for 10 minutes. Please call us on 021 686 3950.
      – We have Paddocks Club, an exclusive online club, to help you get answers to your questions about community schemes.

      Kind regards,
      Paddocks

  • Charmaine Anderson
    02/05/2019 20:59

    Do you offer or can you recommend the 1 week basics course in the rules of sectional titles in Durban & if possible the estimated cost.

  • Ann Sturdy
    10/07/2020 13:24

    Please advise if a developer of an estate, with unpaid levies on his registered units, is exempt from voting at an AGM. Will you also advise if a developed is allowed to vote at an AGM when there are still unresolved issue with the estate and any vote of his would be of personal benefit?

    • Paddocks
      10/07/2020 14:31

      Hi Ann,

      Thank you for your comment.

      This is something our attorneys would be able to assist with. Please email us on consulting@paddocks.co.za with regards to your matter, and we can provide you with a no-obligation quote, so that we can assist you.

      Kind regards,
      Paddocks