By Anton Kelly
A certain sports club holds its AGM directly after the annual fun competition that just about all the members like to take part in. Why? Because most members are on the premises, everyone’s in a good mood with not much else to do on the Saturday afternoon and, consequently, it’s the best chance of getting enough members to attend the AGM to make it worthwhile. And yet members still run for the hills, muttering excuses about shopping, kid’s play dates, gardening tasks, anything to avoid sitting through the AGM. Sound familiar?
Just as for members in sports clubs, attending the AGM is the sectional title owners’ only real chance of influencing how their scheme is run. The prescribed rules specify a number of very important items that must be considered and decided on by the owners at the AGM. These decisions directly affect owners’ lifestyles and pockets so it’s worth the time and trouble of attending and taking part in those decisions.
The root cause of most serious disputes in schemes is money. At the AGM, members have the opportunity to discuss, and have explained to them if necessary, how their money was spent. The logical as well as stipulated second part of the financial discussion is the approval of the budget for the coming year. This is each owner’s opportunity to make sure that the amounts approved are reasonable but realistic enough to avoid raising the spectre of a special levy.
A very common cause of dissatisfaction among owners is the behaviour of trustees and the chairperson. Every owner is entitled to nominate one or more persons – including him or herself – to serve as a trustee and then, at the AGM, to vote for their election. There is no need to suffer because of incompetent or overzealous trustees. The AGM is the opportunity for owners to vote in people of their choice for this very important function.
Once suitable trustees have been voted into office, there is opportunity at the AGM to direct or restrict their activities. Any owner may make such a proposal. Examples could be a limit on spending on a single item without informing the owners beforehand; a direction that a different managing agent be appointed; or any one of the trustees’ tasks. But bear in mind that the owners can’t take away any function or power that is given to the trustees in the Act or rules, such as the raising of a special levy: the owners may only make restrictions on how the trustees go about that function.
Any owner who wants to influence a specific aspect of scheme management is able to do so, but a single owner’s influence is limited. Lobby other owners before the AGM. One owner’s views are easily marginalised (however many proxies he or she might hold). If five voices are raised on an issue, they become very difficult to ignore. If ten people actively support an issue, even if they are eventually outvoted, they are likely to make a permanent impression!
Article reference: Paddocks Press: Volume 7, Issue 12, Page 1
Anton Kelly is the course convener of the University of Cape Town (Law@Work) Sectional Title Scheme Management course. Next course starts, 3 December 2012. For more information please contact Emma on 021 447 4130 or emma@paddocks.co.za.
This article is published under the Creative Commons Attribution license.
Recent Posts
Archives
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- March 2009
- February 2009
- February 2008
- February 2007
Recent Comments