By Adjunct Prof Graham Paddock

Prof Graham Paddock
Below is an example of a question on the discussion forum on Paddocks Club. We want to show what is available to our Community Members!


No trustees elected for new year

Member question:

At our last AGM, no trustees were elected for a new year. As new members of the body corporate, we have a proposal for a new Managing Agent. As we don’t have a chairperson or elected trustees in place, how do we circulate this new proposal? Can we forward to the owners directly, or do we work via the existing Managing Agent, even though the proposal is for a new Managing Agent?

Paddocks ClubGraham’s answer:

The Sectional Titles Act requires that a scheme must have trustees and that the body corporate act via its trustees elected in terms of the scheme rules. See section 39(1) of the Act under the Acts tab.
Before considering the issue of changing the Managing Agent, you have to deal with this more fundamental problem. I suggest that you look at PMR 53 and get the cooperation of other owners holding 25% of the participation quotas, so as to convene a general meeting at which new trustees are elected.

And consider making yourself available for office as a trustee!

 
 
Can a BC rent adjoining property?

Member question:

Can a body corporate by ordinary resolution rent an adjoining property for the use by all its members and maintain such property at its cost instead of paying rent, or will a special or unanimous resolution be necessary?

Can one member say that the above transaction is infringing his proprietary rights and that it cannot be done without his consent?

Graham’s answer:
Yes, if the rental of the adjoining property is in the interests of owners, generally the body corporate has the power to do this.

Because it is the assumption of an ongoing liability that will impact the scheme finances, I suggest that the trustees should not enter into the lease unless the scheme has sufficient unallocated reserves to cover the maintenance costs or rental, and that from the next AGM onwards, these costs should be catered for in the scheme’s budget and levies.
No special or unanimous resolution is required and I think an ordinary majority resolution taken by members at any special general meeting that directs the trustees to enter into this lease will do the trick.
I don’t think that any owner can claim that his proprietary rights are negatively affected, and this is in any event irrelevant, because no unanimous resolution is required.

Article reference:
Paddocks Press: Volume 8, Issue 6, Page 4

 

Adjunct Professor Graham Paddock is available to answer questions on the discussion forum for Community Members of Paddocks Club. Get all your questions answered by joining Paddocks Club at www.PaddocksClub.co.za.


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