By The Paddocks Club Team

Below are examples of two questions on the Paddocks Club discussion forum. We want to show you what is available to our Community members!

Can a chairperson deviate from the AGM agenda?

Member’s question:

At our annual general meeting held yesterday, after the financial report, insurance discussion etc, the interim chairperson wanted to proceed with their own agenda and not the prescribed one plus did not want to adhere to any of the correct procedures.

Fortunately we were able to vote in the number of trustees and then elect those nominated by a majority vote at which point, the interim chairperson tried to cancel the annual general meeting, as neither the chairperson, nor the two other owners the chairperson wanted to elect were voted in as trustees.

Legal action was then threatened. Need the body corporate be worried?

Any suggestions you may have to handle this situation would be appreciated.

Zerlinda’s reply:

For purposes of answering your query, I will assume that the “interim chair” was the outgoing chairperson.

As long as the prescribed agenda items were dealt with in accordance with the voting requirements as set out in the Act, the business of the meeting was duly concluded and the incoming trustees are the duly elected representatives of the body corporate.


Can a management agreement be for only 6 months?

Member’s question:

A body corporate is only prepared to sign a six months management agreement.

Generally the NAMA Agreement is based on a year.

Please advise on this matter.

Anton’s answer:

The trustees are bound by the rules, and must perform the body corporate functions in terms of the Act and rules.

Prescribed management rule 46 says the managing agent contract runs for an initial period of one year and is renewed from year to year, so the trustees are not entitled to enter into a contract for only six months.

Article reference: Paddocks Press: Volume 11, Issue 03, Page 4.

Professor Graham Paddock, Anton Kelly, Carryn Durham and Zerlinda van der Merwe are available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

Back to Paddocks Press – March 2016 Edition.