Sectional Titles Schemes Management Act, 2011 (Act No 8 of ... · 5 (s) “the Act” means the...

Sectional Titles Schemes Management Act, 2011 (Act No 8 of 2011)

SECTIONAL TITLES SCHEMES MANAGEMENT REGULATIONS

Affordable Reliable Justice

Community SchemesOmbud Service

Affordable Reliable Justice

Houses Security Comfort

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Sectional Titles Schemes Management Act, 2011 (Act No 8 of 2011)

SECTIONAL TITLES SCHEMES MANAGEMENT

REGULATIONS Affordable Reliable Justice

Community SchemesOmbud Service

Affordable Reliable Justice

SCHEDULE

ARRANGEMENT OF SECTIONAL TITLES SCHEMES MANAGEMENT REGULATIONS

1. Definitions

2. Minimumamountsforreservefunds

3. Otherriskstobeinsuredagainst

4. Powersofaprovisionalcuratoradlitemandcuratoradlitem

5. Notifications

6. Rules

7. BroadlyrepresentativenatureofAdvisoryCouncil

8. Shorttitleandeffectivedate

Annexures

Annexure 1

Managementrules

Annexure 2

Conductrules

Annexure 3

FORMS

Form A

Notificationofchangeofbodycorporateaddress

Form B

Notificationofamendmentofrules

Form C

Notification,appointmentofproxyandacceptanceofmandate

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Definitions

1. IntheseRegulationsanywordorexpressiontowhichameaninghasbeenassignedintheActhasthemeaningsoassignedand,unlessthecontextotherwiseindicates—

(a) “managingagent”meansanypersonwhoprovidesschememanagementservicestoabodycorporateforreward,whethermonetaryorotherwise,includinganypersonwhoisemployedtorendersuchservices

(b) “primarysection”meansasectiondesignedtobeusedforhumanoccupationasaresidence,office,shop,factoryorforanyothertypeofuseallowedintermsoflocalmunicipalby-laws,notbeingautilitysection;

(c) “schememanagementservice”meansanyfinancial,secretarial,administrativeorotherservicerelatingtotheadministrationofascheme;and

(d) “theAct”meanstheSectionalTitlesSchemesManagementAct,2011(ActNo.8of2011);

(e) “theseregulations”includestheAnnexures;

(f) “utilitysection”meansasectionwhich,intermsoflocalmunicipalityby-laws,isdesignedtobeusedasanaccessorytoaprimarysection,suchasabathroom,toilet,storeroom,workshop,shed,servant’squarters,parkinggarage,parkingbayorotherutilityarea,notbeingaprimarysection.

Minimum amounts for reserve fund

2. Forthepurposesofsection3(1)(b)oftheAct,theminimumamountoftheannualcontributiontothereservefundforafinancialyearbeingbudgetedfor,otherthanthefinancialyearbudgetedforatthefirstgeneralmeetingreferredtoinsection2(8)oftheAct,mustbedeterminedasfollows:

(a) Iftheamountofmoneyinthereservefundattheendofthepreviousfinancialyearislessthan25percentofthetotalcontributions

totheadministrativefundforthatpreviousfinancialyear,thebudgetedcontributiontothereservefundmustbeatleast15percentofthetotalbudgetedcontributiontotheadministrativefund;

(b) iftheamountofmoneyinthereservefundattheendofthepreviousfinancialyearisequaltoorgreaterthan100percentofthetotalcontributionstotheadministrativefundforthatpreviousfinancialyear,thereisnominimumcontributiontothereservefund;and

(c) iftheamountofmoneyinthereservefundattheendofthepreviousfinancialyearismorethan25percentbutlessthan100percentofthetotalcontributionstotheadministrativefundforthatpreviousfinancialyear,thebudgetedcontributiontothereservefundmustbeatleasttheamountbudgetedtobespentfromtheadministrativefundonrepairsandmaintenancetothecommonpropertyinthefinancialyearbeingbudgetedfor.

Other risks to be insured against

3. Otherrisksagainstwhichabodycorporatemayinsure,intermsofsection3(1)(h)oftheAct,are—(a) lightning,explosionandsmoke;(b) riot,civilcommotion,strikes,lock-outs,

labourdisturbancesormaliciouspersonsactingonbehalfoforinconnectionwithanypoliticalorganisation;

(c) storm,tempest,windstorm,hailandflood;(d) earthquakeandsubsidence;(e) waterescape,includingburstingor

overflowingofwatertanks,apparatusorpipes;

(f) impactbyaircraftandvehicles;and(g) housebreakingoranyattemptthereat.

Powers of a provisional curator ad litem and curator ad litem

4. Forthepurposesofsection9(5)oftheAct,thepowersofaprovisionalcuratoradlitemappointedintermsofsection9(3)oftheActor

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acuratoradlitemwhoseappointmenthasbeenconfirmedbyaCourtintermsofsubsection9(4)oftheAct,inadditiontoanypowersexpresslygrantedbytheCourt,are—(a) toattend,askquestionsandspeak,butnot

tovote,atmeetingsofthebodycorporateandofitstrustees;and

(b) toinspectandmakecopiesofanyinformationabouttheaffairsofthebodycorporaterelevanttothecurator’smandate.

Notifications

5.(1) Thebodycorporatenotificationofitsserviceaddressreferredtoinsection3(1)(o)oftheActmustbesubstantiallyinaccordancewithFormAofAnnexure3.

(2)Thebodycorporatenotificationofamendmentofrulesreferredtoinsection10(5)(a)oftheActmustbesubstantiallyinaccordancewithFormBofAnnexure3.

(3)ThenotificationbyamembertoabodycorporateoftheappointmentofaproxymustbesubstantiallyinaccordancewithFormCofAnnexure3.

Rules

6.(1) Rules,asprescribedandasamendedbyabodycorporateinaccordancewithsection10oftheAct,mustbeconsideredtobeandinterpretedaslawsmadebyandforthebodycorporateofthatscheme.

(2)Forthepurposesofsection10(2)(a)and(b)-(a) Subjecttosub-regulations(3),(4),(5)and

(6),managementrulesareastheyappearinAnnexure1;and

(b) ConductrulesareastheyappearinAnnexure2.

(3) whensubmittinganapplicationfortheopeningofasectionaltitleregisteradevelopermaysubstitute,amendorwithdrawmanagementrulesnumber5(2)and(3),7,8(1)and(2)and12andmayaddmanagementrulesthatarenotinconsistentwithanyothermanagementrulethatappearsinAnnexure1.

(4) Iftheschedulereferredtoinsection11(3)boftheSectionalTitlesActcontainsaconditionrestrictingtransferofaunitwithouttheconsentofanassociationwhoseconstitutionstipulatesthat-(a)Allmembersofthebodycorporateand

ofthedevelopmentschemeofwhichtheunitformspart,mustbemembersofthatassociationand;

(b)Thefunctionsandpowersofthebodycorporatemustbeassignedtothatassociation;thedevelopermay,whensubmittinganapplicationfortheopeningofasectionaltitleregister,substituteanymanagementrulethatappearsin Annexure1.

(5) IfatthecommencementoftheActthemembersofabodycorporateareallmembersofanassociationwhoseconstitutionbindsitsmemberstoassignthefunctionsandpowersofthebodycorporatetothatassociation,themanagementrulescontainedinAnnexure1donotapply.

(6)ThemanagementrulessetoutinAnnexure1maybeaddedto,amendedorrepealedbyunanimousresolutionofthebodycorporate:Providedthatnosuchaddition,amendmentorrepealmadebemadeuntilsuchtimeasthereareowners,otherthanthedeveloper,ofatleast30%oftheunitsintheschemesaveinthecaseofabodycorporatewhichisestablishedinaschemewhichwasapprovedintermsoftheSectionalTitleAct,1971.

Broadly representative nature of Advisory Council

7. Forthepurposesofsection18(4)(b),personsnominatedforconsiderationforappointmentbytheMinistertotheAdvisoryCouncilmustbebroadlyrepresentativeoffemales,malesand,wherepossible,includepeoplewithdisabilities.

Short title and effective date

8. TheseRegulationsarecalledtheSectionalTitlesSchemesManagementRegulations,2016andwillcomeintooperationonthedateofpublicationintheGovernmentGazette.

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ANNEXURE 1MANAGEMENT RULES

PART 1

INTRODUCTORY

Heading

1. Managementrulesprescribedintermsofsection10(2)(a)oftheSectionalTitlesSchemesManagementAct,2011(ActNo.8of2011).

Interpretation

2.(1) Intheinterpretationoftheserules,unlessthecontextindicatesotherwise—

(a)“adjudicator”meansanadjudicatoractingintermsoftheCommunitySchemesOmbudServiceAct,2011(ActNo.9of2011);

(b)“administrator”meansanadministratorappointedintermsofsection16oftheAct;

(c) “auditor”meansapersonaccreditedtoperformanauditintermsoftheAuditingProfessionsAct,2005(ActNo.26of2005);

(d) “Community Schemes Ombud Service” meanstheserviceestablishedintermsoftheCommunitySchemeOmbudServiceAct,2011(ActNo.9of2011);

(e)“estimated cost”,forthepurposesofrule22,meanstheestimatedcosttomaintain,repairorreplaceamajorcapitalitem;

(f) “expected life”,forthepurposesofrule22,meanstheestimatednumberofyearsbeforeitisexpectedthatthecostofmaintenance,repairorreplacementofamajorcapitalitemwillbeincurred;

(g) “executive managing agent”meansamanagingagentappointedtocarryoutallthefunctionsandpowersofthetrusteesintermsofrule28;

(h) “future development right”meansarighttoextendtheschemeintermsofsection25oftheSectionalTitlesAct;

(i) “major capital item”,forthepurposesofrule22,meanswiring,lightingandelectricalsystems,plumbing,drainageandstorm-watersystems,heatingandcoolingsystems,anylifts,anycarpetingandfurnishings,roofing,interiorandexteriorpaintingandwaterproofing,communicationandservicesupplysystems,parkingfacilities,roadwaysandpavedareas,securitysystemsandfacilitiesandanyothercommunityandrecreationalfacilities;

(j) “managing agent”meansanypersonwhoprovidesschememanagementservicestoabodycorporateforreward,whethermonetaryorotherwise,includinganypersonwhoisemployedtorendersuchservices;

(k)“member”meansamemberofthebodycorporate;

(l) “past contribution”,forthepurposesofrule22,meansthefundsinthereservefundofthebodycorporateinrespectoftheestimatedcost;

(m)“primary section”meansasectiondesignedtobeusedforhumanoccupationasaresidence,office,shop,factoryorforanyothertypeofuseallowedintermsoflocalmunicipalby-laws,notbeingautilitysection;

(n)“registered auditor”meansapersonasdefinedintermsoftheAuditingProfessionsAct,20015((ActNo.26of2005);

(o) “registered bondholder”meanstheholderofamortgagebondofwhomthebodycorporatehasbeennotifiedintermsofsection13(1)(f)oftheAct;

(p) “reservefunds”meansanamountsetasidebythebodycorporatetomeettheunexpectedcoststhatmayariseinfuture,includingfuturecostofmaintenance;

(q) “SectionalTitlesAct”meanstheSectionalTitlesAct,1986,(ActNo.95of1986),asamended;

(r) “serviceaddress”meanstheserviceaddressofamemberorthebodycorporateintermsofrule4;and

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(s)“theAct”meanstheSectionalTitlesSchemesManagementAct,2011(ActNo.8of2011);

(t) “utilitysection”meansasectionwhich,intermsoflocalmunicipalityby-laws,isdesignedtobeusedasanaccessorytoaprimarysection,suchasabathroom,toilet,storeroom,workshop,shed,servant’squarters,parkinggarage,parkingbayorotherutilityarea,notbeingaprimarysection.

(2) Intheinterpretationoftheserules—

(a)wordsandexpressionstowhichameaninghasbeenassignedintheActoritsregulations,bearthosemeanings;

(b) wordsimporting—

(i) thesingularmustbeinterpretedtoincludetheplural,andthepluraltoincludethesingular;and

(ii)anyonegendermustbeinterpretedtoincludeallothergenders;and

(c)theheadingsofrulesmustnotbetakenintoaccount.

Amendment and binding nature

3.(1) Thebodycorporatemaysubstitute,amend,repeal,oraddtothemanagementrulessubjecttoandinaccordancewiththeprovisionsofsection10oftheAct.

(2)Amembermusttakeallreasonablestepstoensurecompliancewiththeconductrulesinforceintermsofsection10(2)(b)oftheActbyanytenantorotheroccupantofanysectionorexclusiveusearea,includingthemember’semployees,guests,visitorsandfamilymembers.

Service addresses

4.(1)Thebodycorporatemust,fromtimetotime,determinetheaddressthatisitsdomiciliumcitandietexecutandiintermsofsection3(1)(o)oftheAct;providedthatsuchserviceaddressmustbe—

(a)thephysicaladdressofasectioninthescheme;

(b)thephysicaladdressofadulyappointedmanagingagentoradministrator;or

(c)anotherphysicaladdresswithinthemagisterialdistrictinwhichtheschemeislocated.

(2)Thetrusteesmaydesignateafax,emailorotheraddressasanalternatebodycorporateserviceaddress.

(3)AchangeofabodycorporateserviceaddressiseffectivewhenwrittennoticeofthataddressislodgedwiththeCommunitySchemesOmbudServiceintheprescribedform.

(4)Thetrusteesmust,whentheygivetheCommunitySchemesOmbudServicenoticeofachangeofthebodycorporateserviceaddressintermsofsection3(1)(o)oftheAct,simultaneouslygivesuchwrittennoticetoallmembersandotheroccupiersofsectionsandtoallregisteredbondholders.

(5)Theserviceaddressforanylegalprocessordeliveryofanyotherdocumenttoamemberistheaddressoftheprimarysectionregisteredinthatmember’sname;providedthatamemberisentitledbywrittennoticetothebodycorporatetochangethataddressforpurposesascontemplatedinsubsections6(3)(c)and6(4)oftheActtoanotherphysicaladdress,postaladdressorfaxintheRepublicofSouthAfricaortoanemailaddress,andthatthechangeintheserviceaddressofthememberiseffectivewhenthebodycorporatereceivesnoticeofsuchachange.

(6)Theserviceaddressforanylegalprocessordeliveryofanyotherdocumenttoanoccupierofasection,whoisnotamember,isthephysicaladdressofthatsection.

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PART 2

TRUSTEES

5.(1) Allthemembersaretrusteesfromtheestablishmentofthebodycorporateuntiltheendofthefirstgeneralmeeting.

(2)Subjecttorules6(4)and28(1),ifabodycorporateconsistsoflessthan4memberswhoareownersofprimarysections,eachmemberorhisorherrepresentativerecognisedbylawisconsideredtobeatrusteewithoutelectiontooffice.

(3)Ifabodycorporateconsistsofmorethan4memberswhoareownersofprimarysections,theymustfromtimetotimedeterminethenumberoftrusteestobeelectedintermsoftheserules.

Requirements for office and disqualification

6.(1) Atrusteeneednotbeamemberorthelegallyrecognisedrepresentativeofamemberwhoisajuristicperson.

(2)Apersonwhoisthemanagingagentoranemployeeofthemanagingagentorthebodycorporatemaynotbeatrusteeunlessthatpersonisamember.

(3)Atrusteewhohasanydirectorindirectpersonalinterestinanymattertobeconsideredbythetrusteesmustnotbepresentatorplayanypartintheconsiderationordecisionofthematterconcerned.

(4)Atrusteeceasestoholdofficeifthattrustee—

(a)bywrittennoticetothebodycorporate,resignsfromoffice;

(b)isdeclaredbyacourttobeofunsoundmind;

(c)isorbecomesinsolventandtheinsolvencyresultsinthesequestrationofthattrustee’sestate;

(d)isconvicted,orhasbeenconvictedintheRepublicorelsewhere,oftheft,fraud,

forgery,perjuryoranyotheroffenceinvolvingdishonesty;

(e)issentencedtoimprisonmentwithouttheoptionofafine;

(f) isremovedfromanofficeoftrustonaccountofmisconductinrespectoffraudorthemisappropriationofmoney;

(g)isremovedfromofficebyordinaryresolutionofageneralmeeting;providedtheintentiontovoteontheproposedremovalwasspecifiedinthenoticeconveningthemeeting;

(h)isorbecomesdisqualifiedtoholdofficeasadirectorofacompanyintermsoftheCompaniesAct,2008(ActNo.71of2008);or

(i) failsorrefusestopaythebodycorporateanyamountduebythattrusteeafteracourtoradjudicatorhasgivenajudgmentororderforpaymentofthatamount.

Nomination, election and replacement

7.(1)Amembermaynominateanypersonfortheofficeoftrustee.

(2)Thenominationofatrusteemustbeinwriting,accompaniedbythewrittenconsentofthepersonnominatedanddeliveredtothebodycorporateserviceaddressatleast48hoursbeforetheannualgeneralmeetingisduetostart.

(3)Ifaninsufficientnumberofnominationsarereceivedintermsofsub-rule(2),furthernominationsmaybecalledforattheannualgeneralmeetingwiththeconsentofthepersonsnominated.

(4)Savefortheprovisionsofrules5(1)and(2),trusteesmustbeelectedatthefirstgeneralmeetingofthebodycorporateandthenateachsubsequentannualgeneralmeeting.

(5)Ifatrusteeceasestoholdoffice—

(a)theremainingtrustees;or

(b)themembersingeneralmeeting,may

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appointareplacementtrustee.

(6)Anelectedorreplacementtrusteeholdsofficeuntiltheendofthenextannualgeneralmeetingandiseligibleforre-election,ifproperlynominated.

(7)Thetrusteesmayappoint,foraspecifiedperiod,apersonqualifiedtoserveasatrusteeasareplacementforanytrusteewhoisabsentorotherwiseunabletoperformthedutiesofthatoffice.

Payment and indemnity

8.(1) Thebodycorporatemustreimbursetrusteesforalldisbursementsandexpensesactuallyandreasonablyincurredbythemincarryingouttheirdutiesandexercisingtheirpowers.

(2)Unlesssodeterminedbyspecialresolution,trusteeswhoaremembersarenotentitledtoanyreward,whethermonetaryorotherwise,fortheirservicesassuch.

(3)Trusteeswhoarenotmembersmayberewardedfortheirservicesassuch;providedthatanyreward,whethermonetaryorotherwise,mustbeapprovedbyaresolutionofthebodycorporateaspartofthebudgetforthescheme’sadministrativefund.

(4)Thebodycorporatemustindemnifyatrusteewhoisnotamanagingagentagainstallcosts,lossesandexpensesarisingasaresultofanyofficialactthatisnotinbreachofthetrustee’sfiduciaryobligationstothebodycorporate.

PART 3

TRUSTEE MEETINGS AND DECISIONS

General powers and duties

9. Thetrusteesmust—

(a)meettocarryoutthebodycorporate’sbusiness,adjournandotherwiseregulatetheirmeetingsastheythinkfit,subjecttotheprovisionsoftheAct,theserulesandthecommonlawofmeetings;

(b)exercisethebodycorporate’spowersandfunctionsassignedanddelegatedtothemintermsofsection7(1)oftheActinaccordancewithresolutionstakenatgeneralmeetingsandatmeetingsoftrustees;

(c)applythebodycorporate’sfundsinaccordancewithbudgetsapprovedbymembersingeneralmeeting;

(d)appointanyagentoremployeeintermsofsection4(a)oftheActintermsofadulysignedwrittencontract;and

(e)compileminutesofeachtrusteeandgeneralmeetinginaccordancewithrule27(2)(a)anddistributethesetothepersonsentitledtonoticeofthemeetingconcernedassoonasreasonablypossible,butnotlaterthan7daysafterthedateofthemeeting.

Validity of actions

10.(1)Nodocumentsignedonbehalfofthebodycorporateisvalidandbindingunlessitissignedontheauthorityofatrusteeresolutionby—

(a)twotrusteesorthemanagingagent,inthecaseofaclearancecertificateissuedbythebodycorporateintermsofsection15B(3)(i)(aa)oftheSectionalTitlesAct;and

(b)twotrusteesoronetrusteeandthemanagingagent,inthecaseofanyotherdocument.

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(2)Aresolutionadoptedorotheractperformedbythetrusteesremainsvalidandeffectivenotwithstandingthelaterdiscoveryofsomedefectintheappointmentofatrusteeorthedisqualificationofatrustee.

Calling and attendance at meetings

11.(1)Atrusteemayatanytimecallameetingoftrusteesbygivingallothertrusteesnotlessthansevendayswrittennoticeofthetimeandplaceofthemeetingandbysettingoutanagendaforthemeeting:Providedthat—

(a)incasesofurgencyatrusteemaygivesuchshorternoticeasisreasonableinthecircumstances;and

(b)noticeneednotbegiventoanytrusteewhoisabsentfromtheRepublicunlessthemeetingisonereferredtoinsub-rule(5),butnoticemustbegiventoanyreplacementtrusteeappointedforthattrustee.

(2)Thetrusteesmaybywrittenresolutionsetthedatesofandastandardagendafortheirfuturemeetingsanddeliveryofacopyofthisresolutionisconsideredadequatenoticeofallsuchfuturemeetings.

(3)Members,registeredbondholders,holdersoffuturedevelopmentrightsandthemanagingagentmayattendtrusteemeetingsandmayspeakonanymatterontheagenda,buttheyarenotentitledtoproposeanymotionortovote;providedthatsuchpersonsarenotentitledtoattendthosepartsoftrusteemeetingsthatdealwith—

(a) discussionsofcontraventionsoftheActorrules;or

(b)anyothermattersinrespectofwhichthetrusteesresolvethatthepresenceofanysuchpersonswouldunreasonablyinterferewiththeinterestsofthebodycorporateoranyperson’sprivacy.

(4)Ifamember,aregisteredmortgageeortheholderofafuturedevelopmentrightinwritingrequestsnoticeoftrusteemeetings,thetrustees

mustdelivertothatpersonacopyofanoticeofameetingreferredtoinsub-rule(1),aresolutionreferredtoinsub-rule(2)andanoticeofanyadjournmentofsuchameeting;providedthatthebodycorporatemayrecoverfromthepersonconcernedthecostsofdeliveryofsuchdocuments.

(5)Thetrusteesmaymakearrangementsforattendanceatatrusteemeetingbytelephoneoranyothermethod,ifthemethod—

(a)isaccessibletoalltrusteesandotherpersonsentitledtoattendthemeeting;

(b)permitsallpersonsparticipatinginthemeetingtocommunicatewitheachotherduringthemeeting;and

(c)permitsthechairpersontoconfirm,withreasonablecertainty,theidentityoftheparticipants.

(6)Apersonwhoattendsameetingasprovidedundersub-rule(5)isconsideredpresentinpersonatthemeeting.

Chairperson

12.(1)Ifabodycorporateconsistsofonlytwomembers,theprovisionsintheserulesinregardtotheelectionandfunctionsofachairpersondonotapply.

(2)Fromtheestablishmentofthebodycorporateuntiltheendofthefirstgeneralmeeting,thedeveloperorthedeveloper’snomineeisthechairpersonofthetrustees.

(3)Atthecommencementofthefirstmeetingoftrusteesafteranannualgeneralmeetingatwhichtrusteeshavebeenelectedandwheneverelsenecessary,thetrusteesmustbymajorityvoteelectachairpersonfromamongtheirnumber.

(4)Thechairpersonofthetrusteesholdsofficeassuchuntiltheendofthenextannualgeneralmeeting.

(5)Thetrusteesatatrustees’meetingorthemembersatageneralmeetingmayremovethe

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chairpersonfromofficeifnoticeofthemeetingcontainsaclearstatementoftheproposedremoval;providedthatsuchremovaldoesnotautomaticallyremovethechairpersonfromtheofficeoftrustee.

(6)Ifachairpersonisremovedfromofficeassuchorceasestoholdofficeasatrustee,theremainingtrusteesmustelectareplacementchairpersonfromamongtheirnumberwhoholdsofficeaschairpersonfortheremainderoftheperiodofofficeofhisorherpredecessorandhasthesamevotingrights.

(7)Iftheelectedchairpersonvacatesthechairduringthecourseofatrusteemeeting,isnotpresentorisforanyotherreasonunableorunwillingtopreside,thetrusteespresentmustchooseanotherchairpersonfromamongtheirnumberandthatreplacementchairpersonhasallthepowersandfunctionsofthechairpersonwhileactingassuch.

Quorum

13.(1)Atatrusteemeeting,50percentofthetrusteesbynumber,butnotlessthantwo,formaquorum.

(2)Ifthenumberoftrusteesfallsbelowthenumbernecessarytoformaquorum,theremainingtrusteeortrusteesmaycontinuetoact,butonlyto—

(a)appointreplacementtrusteestomakeupaquorum;or

(b)callageneralmeeting.

(3)Ifatanytrusteemeetingaquorumisnotpresentwithin30minutesoftheappointedtimeforthemeeting,thetrusteespresent,butnotlessthantwo,mustadoptinterimresolutionsinrespectofeachitemontheagenda.

(4)Aninterimresolutionadoptedbytrusteesintermsofsub-rule(3)doesnottakeeffectunlessitisconfirmed—(a)atthenexttrusteemeetingatwhicha

quorumispresent;or(b)bywrittenresolutionsignedbyallthe

trustees.

Voting

14.(1)Amotionatatrusteemeeting—

(a)doesnothavetobeseconded;and

(b)mustbedeterminedbyresolutionadoptedbythemajorityofthetrusteespresentandvoting.

(2)Eachtrusteeisentitledtoonevote;providedthatifthedeliberativevotesofthetrustees,includingthatofthechairperson,aretied,thechairpersonhasacastingvote,unlessthereareonlytwotrustees.

(3)Atrusteeisdisqualifiedfromvotinginrespectof—

(a)anyproposedorcurrentcontractordisputewiththebodycorporatetowhichthetrusteeisaparty;and

(b)anyothermatterinwhichthetrusteehasanydirectorindirectpersonalinterest.

(4)Trusteesmustadoptdecisionsbyresolutionsadoptedbymajorityvote:Providedthatresolutionsmaybeputtothevote—

(a)attrusteemeetings;or

(b)byanoticesenttoeachtrusteewhichcontainsthetextofanyproposedresolutionsandinstructsthetrusteestoindicatetheiragreementtotheresolutionbytheirsignature,whichsignaturesmustbereceivedbythebodycorporatebeforeexpiryoftheclosingdatespecifiedinthenotice.

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PART 4

OWNER MEETINGS

Notice

15.(1)Subjecttosub-rule(7),atleast14days’writtennoticeofageneralmeetingspecifyingtheplace,dateandhourofthemeetingmustbegivento—

(a) allmembers;

(b) allregisteredbondholders;

(c)allholdersoffuturedevelopmentrights;and

(d)themanagingagent.

(2)Apersonwhohasarighttobenotifiedunderthisrulemaywaivethatrightbynoticeinwritingdeliveredtothebodycorporateandmay,atanytimeandinthesameway,revokethatwaiver;providedthatiftwoormorepersonsarejointlyentitledtoexerciseavote,allofthemmustwaivetherighttonoticeandanyofthemmayrevokethatwaiver.

(3)Thenoticeofageneralmeetingmustbeaccompaniedbyatleast—

(a)anagenda,asrequiredintermsoftheserules;

(b)acopyorcomprehensivesummaryofanydocumentthatistobeconsideredorapprovedbymembersatthemeeting;and

(c)aproxyappointmentformintheprescribedformat.

(4)Ageneralmeetingmustbeheldinthelocalmunicipalareawheretheschemeissituatedunlessthemembershavebyspecialresolutiondecidedotherwise.

(5)Registeredbondholders,holdersoffuturedevelopmentrightsandthemanagingagentmayattendgeneralmeetingsandmayspeakonanymatterontheagenda,buttheyarenot,inthosecapacities,entitledtoproposeanymotionortovote;providedthatsuchpersonsarenotentitledtoattendanypartofageneralmeetingif

themembersresolvethattheirpresencewouldunreasonablyinterferewiththeinterestsofthebodycorporateoranyperson’sprivacy.

(6)Noticeofageneralmeetingmustbedeliveredto—

(a)membersattheirserviceaddressesintermsofrule4(5),and

(b)otherpersonsatthemostrecentphysical,postal,faxoremailaddressofwhichtheyhavenotifiedthebodycorporateinwriting.

(7)Ageneralmeetingmaybecalled—

(a)on7days’noticeifthetrusteeshaveresolvedthatshortnoticeisnecessaryduetotheurgencyofthematterandsetouttheirreasonsforthisresolution;providedthatthetrusteesmustnottakesucharesolutioninregardtoameetingreferredtoinrule29(2)or(4);

(b)onlessthan14daysnotice,ifthisisagreedtoinwritingbyallpersonsentitledtoattend.

(8)Failuretogivepropernoticeofageneralmeetingtoapersonentitledtoreceivenoticedoesnotinvalidateavotetakenatthemeeting,aslongasthebodycorporatemadeareasonableattempttogivethenotice.

(9)Votingatageneralmeetingmayproceeddespitethelackofnoticeasrequiredbythisrule,ifallpersonsentitledtoreceivenoticeinwritingwaivetheirrighttonotice.

First general meeting

16.(1)Thedevelopermustincludewiththenoticeofthefirstgeneralmeetingheldintermsofsection2(8)oftheAct—

(a)anagendainaccordancewithsub-rule(2);

(b)thedocumentsreferredtoinsub-rule(2);and

(c)acomprehensivesummaryoftherightsandobligationsofthebodycorporateunderthepoliciesandcontractsreferredtoinsub-rule(2)(d).

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(2)Theagendaforthefirstgeneralmeetingofmembersmustincludeatleastthefollowing—

(a)amotiontoconfirmorvarythetermsofthepoliciesofinsuranceeffectedbythedeveloperorthebodycorporate;

(b)amotiontoconfirmorvaryanitemisedestimateofthebodycorporate’santicipatedincomeandexpensesforitsfirstfinancialyear;

(c)amotiontoapprove,withorwithoutamendment,thedeveloper’s—

(i) evidenceofrevenueandexpenditureconcerningthemanagementoftheschemefromthedateofthefirstoccupationofanyunituntilthedateoftheestablishmentofthebodycorporate,asrequiredintermsofsection2(8)(c)(iii)oftheAct;and

(ii)financialstatementsrelatingtothemanagementandadministrationoftheschemefromthedateofestablishmentofthebodycorporatetothedateofnoticeofthefirstgeneralmeetingreferredtoinsub-rule(1);

(d)subjecttosection15(2)oftheAct,amotiontoratifyornottoratifythetermsofanycontractenteredintobythedeveloperonbehalfofthebodycorporate;

(e)amotionconfirmingthatthedeveloperhas—

(i) furnishedthemeetingwithcopiesofthedocumentsreferredtoinsection2(8)oftheActandinthisrule;and

(ii)paidoveranyresiduereferredtoinsection2(9)oftheAct;

(f) amotionappointinganauditortoaudittheevidenceandfinancialstatementsreferredtoinsub-rule(2)(c);

(g)motionsdeterminingthenumberoftrusteesandelectingtrustees;

(h)amotiondetailinganyrestrictionstobe

imposedordirectionstobegivenintermsofsection7(1)oftheActorconfirmingthattherearenosuchrestrictionsordirections.

(3)Forthepurposesofvotingontheitemsofbusinessreferredtoinsub-rule(2)(c),(d)and(e),anyvoteheldorcontrolledbythedeveloperissuspended.

(4)Inadditiontothedocumentsreferredtoinsection2(8)oftheAct,thedevelopermustatorbeforethefirstgeneralmeetingfurnishthebodycorporatewithcopiesof—

(a)allbuildingplansapprovedbythelocalmunicipality;

(b)anyencroachmentpermitorotherdocumentissuedbythelocalmunicipalityinregardtotheimprovementsinthescheme;

(c)plansshowingthelocationofallpipes,wires,cablesandductsreferredtoinsection(3)(1)(r)oftheAct;

(d)namesandaddressesofallcontractors,subcontractorsandanyotherpersonswhomthedeveloperhasemployedtorenderservicesorsupplymaterialsrelatingtothedevelopmentofthescheme;

(e) allwarranties,manuals,schematicdrawings,operatinginstructions,serviceguides,documentationfrommanufacturersandothersimilarinformationinrespectoftheconstruction,installation,operation,maintenance,repairandservicingofanycommonpropertyorbodycorporateassets,occupationcertificate,includinganyguaranteeorwarrantyprovidedtothedeveloperbyapersonreferredtoinsub-rule(4)(d);and

(f) allrecordsthebodycorporateisrequiredtoprepareorretainintermsofrule27.

(5)Ifthedeveloperfailstoprovidethebodycorporatewithanydocumentreferredtoinsection2(8)oftheActorinthisrule,thebodycorporatemustdoallthingsreasonablynecessarytoobtainorhavethespecific

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documentpreparedandmayrecoverthereasonablecostsincurredindoingsofromthedeveloper.

(6)Ifthedeveloperfailstocallthefirstgeneralmeetingincompliancewiththerequirementsofsection2(8)oftheAct,anymemberorthebodycorporatemaydosoandthebodycorporatemustrecoverfromthedeveloperallcostsreasonablyincurredinensuringcompliancewiththedeveloper’sobligations.

Annual and special general meetings

17.(1)Subjecttosub-rule(2),thebodycorporatemustholdanannualgeneralmeetingwithinfourmonthsoftheendofeachfinancialyear.

(2)Thebodycorporateisnotobligedtoholdanannualgeneralmeetingif,beforeorwithinonemonthoftheendofafinancialyear,allmembersinwritingwaivetherighttothemeetingandconsentinwritingtomotionsthatdealwithalltheitemsofbusinessthatmustbetransactedattheannualgeneralmeeting;providedthatiftwoormorepersonsarejointlyentitledtoexerciseavote,allofthemmustwaivetherighttothemeetingandconsenttotheresolutionsinwriting.

(3)Allgeneralmeetingsotherthantheannualgeneralmeetingarespecialgeneralmeetings.

(4)Thetrusteesmaybyresolutioncallageneralmeetingwhenevertheythinkfitandmustdosoifeither—

(a)membersentitledto25percentofthetotalquotasofallsections;or

(b)theholderofmortgagebondsovernotlessthan25percentinnumberofalltheprimarysections,

delivertothebodycorporateawrittenandsignedrequestforaspecialgeneralmeeting;providedthatifthetrusteesfailtocallameetingthusrequestedwithin14daysofdeliveryoftherequest,themembersorbondholderconcernedareentitledtocallthemeeting.

(5)Membersorabondholderwhorequestameetingintermsofsub-rule(4)mustincludeoneormoremotionsormattersfordiscussionwiththeirrequestandthesemotionsormattersmustbeincluded,withoutamendment,intheagendaforthemeeting.

(6)Theorderofbusinessatgeneralmeetingsisasfollows:

(a) confirmproxies,nomineesandotherpersonsrepresentingmembersandissuevotingcards;

(b)determinethatthereisaquorum;

(c)electapersontochairthemeeting,ifnecessary;

(d)presenttothemeetingproofofnoticeofthemeetingorwaiversofnotice;

(e)approvetheagenda;

(f) approveminutesfromthepreviousgeneralmeeting,ifany;

(g)dealwithunfinishedbusiness,ifany;

(h)dealwithanybusinessreferredtoinsub-rule(5);

(i) ifthemeetingisthefirstgeneralmeetingreferredtoinsection2(8)oftheAct,dealwiththebusinesssetoutinrule16(2);

(j) ifthemeetingisanannualgeneralmeeting

(i) receivereportsoftheactivitiesanddecisionsoftrusteessincethepreviousgeneralmeeting,includingreportsofcommittees;

(ii)approvetheschedulesofinsurancereplacementvaluesreferredtoinrule23(3),withorwithoutamendment;

(iii)determinetheextentoftheinsurancecoverbythebodycorporateintermsofrules23(6),(7)and(8);

(iv)approvethebudgetsfortheadministrativeandreservefundsforthenextfinancialyear;

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(v)considertheannualfinancialstatements;

(vi)appointanauditortoaudittheannualfinancialstatements,unlessallthesectionsintheschemeareregisteredinthenameofoneperson;

(vii)ifthebodycorporatehasmorethanfourmemberswhoareownersofprimarysectionsandisnotmanagedbyanexecutivemanagingagentintermsofrule28,determinethenumberoftrusteestobeelectedtoserveduringthenextfinancialyear;and

(viii) electthetrustees;

(k)reportonthelodgmentofanyamendmentstothescheme’srulesadoptedbythebodycorporateundersection10oftheActand,ifapplicable,tableaconsolidatedsetofschemerules;

(l) dealwithanyneworfurtherbusiness;

(m)givedirectionsorimposerestrictionsreferredtoinsection7(1)oftheAct;and

(n)dissolvethemeeting.

(7)Subjecttosub-rules(5)and(6),thetrusteesdeterminetheagendaforanannualorspecialgeneralmeeting;providedthattheagendamustcontain—

(a)adescriptionofthegeneralnatureofallbusiness,and

(b)adescriptionofthemattersthatwillbevotedonatthemeeting,includingtheproposedwordingofanyspecialorunanimousresolution.

(8)Ifanyoftheitemsofbusinessthatrequirememberapprovalarenotapprovedatanannualgeneralmeetingoranyadjournmentofthemeeting;theresolutionnottoapprovetherelevantdocumentmustincludethereasonsfornon-approvalandthebodycorporatemusthavethedocumentrevisedandsubmittedtoanothergeneralmeetingforapprovalassoonasreasonablypossible,untilitisapproved.

(9)Thebodycorporatedoesnothavetoholdaspecialgeneralmeetingtoconsideraresolutionifallmemberswaivetherighttothemeetingandconsenttotheresolutioninwriting;providedthatiftwoormorepersonsarejointlyentitledtoexerciseavote,allofthemmustwaivetherighttothemeetingandconsenttotheresolutioninwriting.

(10)Abodycorporatemaymakearrangementsforattendanceatanannualorspecialgeneralmeetingbytelephoneoranyothermethod,ifthemethod—

(a)isaccessibletoallmembersandotherpersonsentitledtoattendthemeeting;

(b)permitsallpersonsparticipatinginthemeetingtocommunicatewitheachotherduringthemeeting;and

(c)permitsthechairpersontoconfirm,withreasonablecertainty,theidentityoftheparticipants.

(11) Apersonwhoattendsameetingasprovidedundersub-rule(10)isconsideredpresentinpersonatthemeeting.

Chairperson

18.(1)Thechairpersonofthetrusteesmustpresideaschairpersonateverygeneralmeetingofthebodycorporate,unlessotherwiseresolvedbymembersatthemeeting.

(2)Ifthereisnochairpersonorthechairpersonofthetrusteesisnotpresentwithin15minutesafterthetimeappointedforthemeeting,orisunwillingorunabletoactaschairperson,thememberspresentmustelectachairpersonforsuchmeeting.

(3)Achairpersonmust—

(a)maintainorder,regulatetheorderlyexpressionofviewsandguidethemembersandotherparticipantsthroughthebusinessofthemeetinginaccordancewiththecommonlawofmeetings;

(b)ensurethatallmotionsandamendments

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proposedarewithinthescopeofthenoticeandpowersofthemeeting;

(c)ensurethatthescheme’srules,theminutebooksandanyotherdocumentsrelevanttotheitemsofbusinessontheagendaareavailableatthemeeting;

(d)actfairly,impartiallyandcourteouslytoallmembersandothersentitledtoattendthemeeting;

(e)ensurethatallmembersandotherpersonsentitledtospeakareabletoexpresstheirviewswithoutunnecessarydisturbanceorinterruption;

(f) adjournthemeeting,whenitisnotabletocompleteorcontinuewithitsbusiness;

(g)makedecisionsonpointsofprocedure;

(h)settledisputesbygivingrulingsonpointsoforder;and

(i) surrenderthechairtoatemporarychairpersonelectedbythemembersforanyperiodduringwhichthechairpersonwishestoengageinthedebateofanyitemofbusiness.

(4)Achairpersonatageneralmeetingmustnot—

(a)fromthechair,attempttoinfluencemembers’viewsonanyitemofbusiness;or

(b)discloseinadvanceofavotehowthechairpersonintendstovoteonanyitemofbusiness.

Quorum

19.(1)Businessmustnotbetransactedatanygeneralmeetingunlessaquorumispresentorrepresented.

(2)Aquorumforageneralmeetingisconstituted—

(a)foraschemewithlessthan4primarysectionsorabodycorporatewithlessthanfourmembers,bymembersentitledtovoteandholdingtwothirdsofthetotalvotesofmembersinvalue;

(b)foranyotherscheme,bymembersentitledtovoteandholdingonethirdofthetotalvotesofmembersinvalue,providedthatatleasttwopersonsmustbepresentunlessallthesectionsintheschemeareregisteredinthenameofoneperson,andprovidedfurtherthatincalculatingthevalueofvotesrequiredtoconstituteaquorum,thevalueofvotesofthedevelopermustnotbetakenintoaccount.

(3)Forthepurposeofestablishingaquorumandforthepurposesofsection6oftheAct,thevalueofvotesofanysectionsregisteredinthenameofthebodycorporatemustnotbetakenintoaccountandthebodycorporatemustnotbeconsideredtobeamember.

(4)Ifwithin30minutesfromthetimeappointedforageneralmeetingaquorumisnotpresent,themeetingstandsadjournedtothesamedayinthenextweekatthesameplaceandtime;providedthatifonthedaytowhichthemeetingisadjournedaquorumasdescribedinsub-rule(2)isnotpresentwithin30minutesfromthetimeappointedforthemeeting,themembersentitledtovoteandpresentinpersonorbyproxyconstituteaquorum.

Voting and representatives

20.(1)Amotionatageneralmeeting—

(a)doesnotneedtobeseconded;and

(b)exceptforaspecialorunanimousresolution,mustbeadoptedbyresolutionofthemajorityofthevotes,calculatedinvalue,ofthememberspresentandvoting.

(2)Exceptforspecialandunanimousresolutions,amemberisnotentitledtovoteif—

(a) amemberfailsorrefusestopaythebodycorporateanyamountduebythatmemberafteracourtoradjudicatorhasgivenajudgmentororderforpaymentofthatamount;or

(b)thatmemberpersistsinthebreachofanyoftheconductrulesoftheschemereferredto

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insection10(2)(b)oftheActafteracourtoranadjudicatorhasorderedthatmembertorefrainfrombreachingsuchrule.

(3)Forthepurposesofanyvote,thevaluesofvotesofanysectionsregisteredinthenameofthebodycorporateareconsideredabstentions.

(4)Whereamemberisassuchatrusteeforabeneficiary,thatmemberexercisesvotingrightstotheexclusionofpersonsbeneficiallyinterestedinthetrustandsuchpersonsarenotentitledtovote.

(5)Amember’sappointmentofaproxyintermsofsection6(5)oftheActandtheproxy’sacceptanceofthemandatemust,exceptinthecaseofanappointmentinamortgagebond,besubstantiallyintheprescribedformandmustbe—

(a)deliveredtothebodycorporate48hoursbeforethetimeofthemeeting;or

(b)handedtothechairpersonbeforeoratthestartofthemeeting.

(6)Aproxyneednotbeamember,butmustnotbethemanagingagentoranemployeeofthemanagingagentorthebodycorporate.

(7) Whentwoormorepersonsareentitledtoexerciseonevotejointly,thatvotemaybeexercisedonlybyoneperson,whomayormaynotbeoneofthem,jointlyappointedbythemastheirproxy.

(8)Theoutcomeofeachvote,includingthenumberofvotesforandagainsttheresolution,mustbeannouncedbythechairpersonandrecordedintheminutesofthemeeting.

(9)Ifaspecialresolutionispassedatageneralmeetingbymembersholdinglessthan50percentofthetotalvalueofallmembers’votes—

(a)thebodycorporatemustnottakeanyactiontoimplementthatresolutionforoneweekafterthemeeting,unlessthetrusteesresolvethattherearereasonablegroundstobelievethatimmediateactionisnecessarytoensuresafetyorpreventsignificantlossor

damagetothescheme;and

(b) withinsevendaysfromaresolutionreferredtoinsub-rule9(a),membersholdingatleast25percentofthetotalvotesofallmembersinvaluemay,bywrittenandsignedrequestdeliveredtothebodycorporate,requirethatthebodycorporateholdaspecialgeneralmeetingtoreconsidertheresolution.

(10)Ifademandreferredtoinsub-rule(9)(b)isdeliveredtothebodycorporate,thetrusteesmustnotimplementtheresolutionunless—

(a)itisagainpassedbyspecialresolution;or

(b)aquorumisnotpresentwithin30minutesofthetimesetforthemeeting.

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PART 5

FINANCIAL MANAGEMENT

Financial year, functions and powers

21.(1)ThefinancialyearofabodycorporateestablishedaftertheActcomesintooperationmustrunfromthefirstdayofOctoberofeachyeartothelastdayofSeptemberofthefollowingyearunlessotherwiseresolvedbythebodycorporateingeneralmeeting.

(2)Thebodycorporatemustnot—

(a)makeloansfrombodycorporatefundswithouttheauthorityofaunanimousresolution;

(b)refundtoanymemberacontributionlawfullyleviedandpaid;

(c)distributetoamemberoranyotherpersonanyportionofthebodycorporate’sprofitsorgainsexcept—

(i) upondestructionordeemeddestructionofthebuildings,or

(ii)wheresuchprofitorgainisofacapitalnature.

(3)Thebodycorporatemay,ontheauthorityofawrittentrusteeresolution—

(a)levymemberswithaspecialcontributionifadditionalincomeisrequiredtomeetanecessaryexpensethatcannotreasonablybedelayeduntilprovidedforinthebudgetforthenextfinancialyear;

(b)increasethecontributionsduebythemembersbyamaximumof10percentattheendofafinancialyeartotakeaccountoftheanticipatedincreasedliabilitiesofthebodycorporate,whichincreasewillremaineffectiveuntilmembersreceivenoticeofthecontributionsduebythemforthenextfinancialyear;providedthatthetrusteesmustgivemembersnoticeofsuchincreasedcontributionsbynoticeintermsofrule25,

withsuchchangesasarerequiredbythecontext;

(c)chargeinterestonanyoverdueamountpayablebyanmembertothebodycorporate;providedthattheinterestratemustnotexceedthemaximumrateofinterestpayableperannumundertheNationalCreditAct(2005)ActNo34of2005),compoundedmonthlyinarrear;

(d)investanymoneysinthereservefundreferredtoinsections3(1)(b)oftheActinasecureinvestmentwithanyinstitutionreferredtointhedefinitionof“financialinstitution”insection1oftheFinancialServicesBoardAct,1990(ActNo.97of1990);

(e)enterintowrittenandsignedcontractsinrespectofitspowersanddutiesundertheActandtheserules;

(f) joinorganisationsandsubscribetoservicestofurtheritspurposesundertheActandtheserules;

(g)delegatetooneormoreofthetrustees,toamember,agentoranemployeesuchoftheirpowersanddutiesastheydeemfit,andatanytimetorevokesuchdelegation;providedthatwhentheydelegateanypowerordutytheymustspecifyinwriting—

(i) thepowerordutyconcerned;

(ii)amaximumamountofthebodycorporate’sfundsthatmaybespentforaparticularpurpose;and

(iii)anyconditionsthatmaybeapplicable;and

(h)approachtheCommunitySchemeOmbudServiceforrelief.

(4)Thebodycorporatemustensurethatallmoneyreceivedbythebodycorporateisdepositedtothecreditofaninterest-bearingbankaccount—

(a)inthenameofthebodycorporate;or

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(b)thatisatrustaccountopenedintermsofeithertheEstateAgencyAffairsAct,1976(ActNo.112of1976),ortheAttorneysAct,1979(ActNo.53of1979).

Maintenance, repair and replacement plan

22.(1)Abodycorporateortrusteesmustprepareawrittenmaintenance,repairandreplacementplanforthecommonproperty,settingout—

(a)themajorcapitalitemsexpectedtorequiremaintenance,repairandreplacementwithinthenext10years;

(b)thepresentconditionorstateofrepairofthoseitems;

(c)thetimewhenthoseitemsorcomponentsofthoseitemswillneedtobemaintained,repairedorreplaced;

(d)theestimatedcostofthemaintenance,repairandreplacementofthoseitemsorcomponents;

(e)theexpectedlifeofthoseitemsorcomponentsoncemaintained,repairedorreplaced;and

(f) anyotherinformationthebodycorporateconsidersrelevant.

(2)Theannualcontributiontothereservefundforthemaintenance,repairorreplacementofeachofthemajorcapitalitemsmustbedeterminedaccordingtothefollowingformula:[(estimatedcostminuspastcontribution)dividedbyexpectedlife].

(3)Amaintenance,repairandreplacementplantakeseffectonitsapprovalbythemembersingeneralmeeting;providedthatonapprovalofsuchaplan,membersmaylaydownconditionsforthepaymentofmoneyfromthereservefund.

(4)Thetrusteesmustreporttheextenttowhichtheapprovedmaintenance,repairandreplacementplanhasbeenimplementedtoeachannualgeneralmeeting.

Insurance

23.(1)Theinsurancepoliciesofthebodycorporateintermsofsections3(1)(h)and(i)oftheAct—

(a)mustprovidecoveragainst—

(i) risksreferredtoinregulation3;

(ii)risksthatmembersresolvemustbecoveredbyinsurance;and

(iii)risksthatholdersofregisteredfirstmortgagebondsovernotlessthan25percentinnumberoftheprimarysectionsbywrittennoticetothebodycorporatemayrequiretobecoveredbyinsurance;

(b)mustspecifyareplacementvalueforeachunitandexclusiveusearea,excludingthemember’sinterestinthelandincludedinthescheme;providedthatanymembermayatanytimebywrittennoticetothebodycorporaterequirethatthereplacementvaluespecifiedforthatmember’sunitorexclusiveuseareabeincreased;

(c)mustrestricttheapplicationofany“average”clausetoindividualunitsandexclusiveuseareas,sothatnosuchclauseappliestothebuildingsasawhole;

(d)mustincludeaclauseintermsofwhichthepolicyisvalidandenforceablebyanyholderofaregisteredmortgagebondoverasectionorexclusiveuseareaagainsttheinsurernotwithstandinganycircumstanceswhatsoeverwhichwouldotherwiseentitletheinsurertorefusetomakepaymentoftheamountinsured,unlessanduntiltheinsurerterminatestheinsuranceonatleast30days’noticetothebondholder;and

(e)mayincludeprovisionfor“excess”amounts.

(2)Amemberisresponsible—

(a) forpaymentofanyadditionalpremiumpayableonaccountofanincreaseinthereplacementvaluereferredtoinsub-rule(1)(b);

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(b)foranyexcessamountthatrelatestodamagetoanypartofthebuildingsthatmemberisobligedtorepairandmaintainintermsoftheActortheserules,

andmustfurnishthebodycorporatewithwrittenprooffromtheinsurerofpaymentofthatamountwithinsevendaysofwrittenrequest.

(3)Abodycorporatemustobtainareplacementvaluationofallbuildingsandimprovementsthatitmustinsureatleasteverythreeyearsandpresentsuchreplacementvaluationtotheannualgeneralmeeting.

(4)Abodycorporatemustprepareforeachannualgeneralmeetingschedulesshowingestimatesof—

(a)thereplacementvalueofthebuildingsandallimprovementstothecommonproperty;and

(b)thereplacementvalueofeachunit,excludingthemember’sinterestinthelandincludedinthescheme,thetotalofsuchvaluesofallunitsbeingequaltothevaluereferredtoinsub-rule4(a).

(5)Onwrittenrequestbyanyregisteredbondholderandthefurnishingofsatisfactoryproof,thebodycorporatemustrecordthecessiontothatbondholderofthatmember’sinterestinanyoftheproceedsoftheinsurancepoliciesofthebodycorporate.

(6)Abodycorporatemusttakeoutpublicliabilityinsurancetocovertheriskofanyliabilityitmayincurtopaycompensationinrespectof—

(a)anybodilyinjurytoordeathorillnessofapersononorinconnectionwiththecommonproperty;and

(b)anydamagetoorlossofpropertythatissustainedasaresultofanoccurrenceorhappeninginconnectionwiththecommonproperty,foranamountdeterminedbymembersingeneralmeeting,butnotlessthan10millionrandoranysuchhigheramountasmaybeprescribedbythe

Ministerinanyoneclaimandintotalforanyoneperiodofinsurance.

(7)Abodycorporatemusttakeoutinsuranceforanamountdeterminedbymembersingeneralmeetingtocovertheriskoflossoffundsbelongingtothebodycorporateorforwhichitisresponsible,sustainedasaresultofanyactoffraudordishonestycommittedbyatrustee,managingagent,employeeorotheragentofthebodycorporate.

(8)Abodycorporate,authorisedbyaspecialresolutionofmembers,mayinsureanyadditionalinsurableinterestthebodycorporatehas—

(a)inthelandandbuildingsincludedinthescheme;and

(b)relatingtotheperformanceofitsfunctions,foranamountdeterminedinthatresolution.

Administrative and reserve funds

24.(1)Theadministrativefundreferredtoinsection3(1)(a)oftheActmustbeusedtofundtheoperatingexpensesofthebodycorporateforaparticularfinancialyear.

(2)Thereservefundmaintainedintermsofsection3(1)(b)oftheActmustbeusedfortheimplementationofthemaintenance,repairandreplacementplanofthebodycorporatereferredtoinrule22.

(3)Thefollowingamountsmustbepaidintothereservefund—

(a)anypartoftheannualleviesdesignatedasbeingforthepurposeofreservesorthemaintenance,repairandreplacementplan;

(b)anyamountsreceivedunderaninsurancepolicyinrespectofdamageordestructionofpropertyforwhichthebodycorporateisresponsible;

(c)anyinterestearnedontheinvestmentofthemoneyinthereservefund;

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(d)anyotheramountsdeterminedbythebodycorporate,andallotherbodycorporateincomemustbepaidintotheadministrativefund.

(4)Moneymaybepaidoutoftheadministrativefundinaccordancewithtrusteeresolutionsandtheapprovedbudgetfortheadministrativefund.

(5)Moneymaybepaidoutofthereservefund—

(a)atanytimeinaccordancewithtrusteeresolutionsandtheapprovedmaintenance,repairandreplacementplan;or

(b)ifthetrusteesresolvethatsuchapaymentisnecessaryforthepurposeofanurgentmaintenance,repairorreplacementexpense,whichpurposeincludes,withoutlimitation—(i) tocomplywithanorderofacourtoran

adjudicator;(ii)torepair,maintainorreplaceany

propertyforwhichthebodycorporateisresponsiblewheretherearereasonablegroundstobelievethatanimmediateexpenditureisnecessarytoensuresafetyorpreventsignificantlossordamagetopersonsorproperty;

(iii)torepairanypropertyforwhichthebodycorporateisresponsiblewheretheneedfortherepairscouldnothavebeenreasonablyforeseeninpreparingthemaintenance,repairandreplacementplan;or

(iv)toenablethebodycorporatetoobtainadequateinsuranceforpropertythatthebodycorporateisrequiredtoinsure;

providedthatthetrusteesmustreporttothemembersonanysuchexpenditureassoonaspossibleafteritismade.

(6)Expenditureundersub-rule(5)(b)—

(a)mustnotexceed—(i) theamountnecessaryforthepurpose

forwhichitisexpended;or(ii)anylimitationimposedbythebody

corporateonexpenditure;and

(b)mustcomplywithanyrestrictionsimposedordirectionsgivenbymembers.

Contributions and charges

25.(1)Thebodycorporatemust,assoonaspossiblebutnotlaterthan14daysaftertheapprovalofthebudgetsreferredtoinrule17(6)(j)(iv)byageneralmeeting,giveeachmemberwrittennoticeofthecontributionsandchargesdueandpayablebythatmembertothebodycorporate,whichnoticemust—

(a)statethatthememberhasanobligationtopaythespecifiedcontributionsandcharges;and

(b)specifytheduedateforeachpayment;and

(c)ifapplicable,statethatinterestataratespecifiedinthenoticewillbepayableonanyoverduecontributionsandcharges;and

(d)includedetailsofthedisputeresolutionprocessthatappliesinrespectofdisputedcontributionsandcharges.

(2)Ifmoneyowingisnotpaidonthedatesspecifiedinthenoticereferredtoinsub-rule(1),thebodycorporatemustsendafinalnoticetothemember,whichnoticemuststate—

(a)thatthememberhasanobligationtopaytheoverduecontributionsandchargesandanyapplicableinterestimmediately;and

(b)ifapplicable—

(i) theinterestthatispayableinrespectoftheoverduecontributionsandchargesatthedateofthefinalnotice;and

(ii) theamountofinterestthatwillaccruedailyuntilthepaymentoftheoverduecontributionsandcharges;and

(c)thatthebodycorporateintendstotakeactiontorecovertheamountdueiftheoverduecontributionsandchargesandinterestowingarenotpaidwithin14daysafterthedatethefinalnoticeisgiven.

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(3)Subjecttorules21(3)(a)and(b),aftertheexpiryofafinancialyearanduntiltheybecomeliableforcontributionsinrespectofthenextfinancialyear,membersareliableforcontributionsinthesameamountsandpayableinthesameinstallmentsasweredueandpayablebythemduringthepastfinancialyear.

(4)Amemberisliableforandmustpaytothebodycorporateallreasonablelegalcostsanddisbursements,astaxedoragreedbythemember,incurredbythebodycorporateinthecollectionofarrearcontributionsoranyotherarrearamountsdueandowingbysuchmembertothebodycorporate,orinenforcingcompliancewiththeserules,theconductrulesortheAct.

(5)Thebodycorporatemustnotdebitamember’saccountwithanyamountthatisnotacontributionorachargeleviedintermsoftheActortheseruleswithoutthemember’sconsentortheauthorityofajudgmentororderbyajudge,adjudicatororarbitrator.

(6)Thebodycorporatemustinitsannualfinancialstatementsaccountforallcontributionsandanyotherchargesdebitedtomembers’accounts.

(7)Onrequestinwritingbyamemberthebodycorporatemustmakeavailableafullanddetailedaccountofallamountsdebitedandcreditedtothemember’saccountwiththebodycorporate.

Financial records, budgets, reports and audit

26.(1)Abodycorporatemust—

(a)keepproperbooksofaccountsthat—

(i) recordallitsincome,expenditure,assetsandliabilities;

(ii)discloseallamountsrecoveredfrommembersbythebodycorporateoranymanagingagentorotherserviceprovideractingonitsbehalf;

(iii) includeindividualaccountsforeachmember;and

(iv)containallotherinformationnecessarytoallowmemberstoassessthebodycorporate’sfinancialsituationandtheirfinancialsituationinregardtothebodycorporate.

(b)keepseparatebooksofaccountandbankaccountsforitsadministrativeandreservefundsreferredtoinsections3(1)(a)and(b)oftheAct;

(c)prepareannualfinancialstatementsforpresentationattheannualgeneralmeeting,whichstatementsmustincludeanalysesofthe—

(i) amountsduetothebodycorporateinrespectofcontributions,specialcontributionsandothercharges,classifiedbymemberandtheperiodsforwhichsuchamountswereowed;

(ii)amountsduebythebodycorporatetoitscreditorsgenerallyandprominentlydisclosingamountsduetoanypublicauthority,localmunicipalityorotherentityforservicesincluding,withoutlimitation,water,electricity,gas,sewerageandrefuseremoval,classifiedbycreditorandtheperiodsforwhichsuchamountswereowed;

(iii)amountsadvancedtothebodycorporatebywayoflevyfinance,aloan,intermsofaguaranteeinsurancepolicyorotherwise,settingouttheactualorcontingentliabilityofthebodycorporateandtheamountspaidbythebodycorporateandbyanymemberintermsofsucharrangement;

(iv)amountsinthereservefundshowingtheamountavailableformaintenance,repairandreplacementofeachmajorcapitalitemasapercentageoftheaccruedestimatedcostandtherandvalueofanyshortfall;

(v)premiumsandotheramountspaidandpaymentsreceivedbythebodycorporateandanymemberintermsoftheinsurancepoliciesofthebody

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corporateandtheexpirydateofeachpolicy;and

(vi)amountsdueandpayabletotheCommunitySchemesOmbudService.

(d)prepareamaintenance,repairandreplacementplaninaccordancewithrule22forpresentationattheannualgeneralmeeting;

(e)preparebudgetsfortheadministrativeandreservefundscomprisingitemisedestimatesoftheanticipatedincomeandexpensesduringthenextfinancialyearforpresentationattheannualgeneralmeeting;providedthatsuchbudgetsmayincludediscountsnotexceeding10percentofamembers’annualcontributionsapplicableifallthosecontributionsarepaidonorbeforetheduedates;

(f) prepareareportadoptedbythetrusteesreviewingtheaffairsofthebodycorporateduringthefinancialyearforpresentationattheannualgeneralmeeting.

(2)Ontheapplicationofanymember,registeredbondholderorofthemanagingagent,thebodycorporatemustmakealloranyofthebooksofaccountandrecordsavailableforinspectionandcopying.

(3)Thebodycorporatemustensurethatallthebodycorporate’sbooksofaccountandfinancialrecordsareretainedforaperiodofsixyearsaftercompletionofthetransactions,actsoroperationstowhichtheyrelate.

(4)Unlessallthesectionsintheschemeareregisteredinthenameofoneperson,thebodycorporatemustpresentauditedfinancialstatementstoageneralmeetingforconsiderationwithinfourmonthsaftertheendofthefinancialyear.

(5)Theauditofabodycorporate’sannualfinancialstatements—

(a) mustbecarriedoutbyanindependentauditorwhohasnotparticipatedinthepreparationoftheannualfinancial

statementsoradvisedonanyaspectoftheaccountsofthebodycorporateduringtheperiodbeingreportedon;

(b)neednotbecarriedoutinaccordancewithanyrecognizedfinancial;reportingframeworkofguidelinesforfinancialaccounting;

(c) mustincludeopinionsastowhetherornot—

(i) theannualfinancialstatementsaccuratelyreflectthefinancialpositionofthebodycorporateforthefinancialyearunderreview,withsuchqualificationsandreservationsastheauditorconsidersnecessary;

(ii)thebodycorporatehascompliedwiththeaccountingrequirementssetoutinrules21,24andthisrule26,withaspecificdescriptionofanyfailuretocomplywithsuchrequirements;

(iii)thebooksofaccountofthebodycorporatehavebeenkeptanditsfundshavebeenmanagedsoastoprovideareasonablelevelofprotectionagainsttheftorfraud;and

(iv)thefinancialaffairsofthebodycorporateappeartobeeffectivelymanaged;

(d)mustbecompletedwithinfourmonthsoftheendofthebodycorporate’sfinancialyear.

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PART 6

ADMINISTRATIVE MANAGEMENT

Governance documents and records

27.(1)Thebodycorporatemust—

(a)lodgeanotificationofanamendmenttothescheme’srulesreferredtoinsection10(5)oftheActassoonasreasonablypossible,butnotlaterthan10daysafterthedateoftherelevantresolutionofthebodycorporate;and

(b)compileandkeepacompletesetofallmanagementandconductrulesincluding—

(i) anindex;and(ii)aprominentreferencetoanyrules

thatconferexclusiveuserights,varytheeffectsoftheparticipationquotasinregardtothevalueofvotesortheliabilityforcontributions,orimposeeitherafinancialoramaintenanceobligationonmembers;

(c)prepareaconsolidatedsetofruleswhenevertheyareamended.

(2)Thebodycorporatemustprepareandupdatethefollowingrecords—

(a)minutesofgeneralandtrusteemeetings,includingthefollowinginformation—(i) thedate,timeandplaceofthemeeting;(ii)thenamesandroleofthepersons

present,includingdetailsoftheauthorisationofproxiesorotherrepresentative;

(iii)thetextofallresolutions;and(iv)theresultsofthevotingonallmotions;

(b)listsoftrustees,membersandtenantswiththeir—(i) fullnames;(ii)identitynumbersor,inthecaseofnon-

SouthAfricancitizens,theirpassportnumbers;and

(iii) sectionaddressesandmailingaddresses,ifdifferent;

(iv)telephonenumbers;and

(v)emailorotherelectronicaddresses,ifany;

(c)listsof—(i) sectionsshownonthesectionalplan,

indicatingineachcasewhetheritisaprimaryorautilitysection,itsparticipationquotaandthenameofthememberinwhosenameitisregistered;

(ii)exclusiveuseareaswithdescriptionsofpurposesandnumbers,ifany,indicatingwhethertherightstoeachareaareconferredintermsofsection27oftheSectionalTitlesActorintermsofarule,andareferencetotherelevantrulewhereapplicable;and

(iii)registeredbondholderswiththeirnamesandaddresses;

(d)detailsofallfuturedevelopmentrightsincluding—(i) namesandaddressesofallregistered

holdersofsuchrights;and(ii)copiesofalldocumentationpreparedin

termsofsection25(2)oftheSectionalTitlesActforanysuchright;and

(e)anyotherrecordsrequiredbytheregulations.

(3)Thebodycorporatemayobtainandkeepcopiesofallofthefollowing:

(a)Theregisteredsectionalplanandanyregisteredamendingsectionalplan;

(b)theActandtheregulations;

(c)resolutionsthatdealwithchangestothecommonproperty,includingtheconferringofexclusiveuserightsonmembers;

(d) consentsandapprovalsgivenbythebodycorporatetomembers;

(e)waiversandconsentsgivenbymembers;

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(f) writtencontractstowhichthebodycorporateisaparty;

(g)anydecisionofanadjudicator,arbitrator,magistrateorjudgeinaproceedinginwhichthebodycorporateisaparty,andanylegalopinionsobtainedbythebodycorporate;

(h) thebudgetandfinancialstatementforthecurrentyearandpreviousyears;

(i) incometaxreturns;

(j) insurancepolicies,endorsementandclaimforms;

(k)correspondencesentorreceivedbythebodycorporateandtrustees;and

(l) anyotherrecordsrequiredbytheregulations.

(4)Onreceivingawrittenrequest,thebodycorporatemustmaketherecordsanddocumentsreferredtointhisruleavailableforinspectionby,andprovidecopiesofthemto—

(a)amember;

(b)aregisteredbondholder;or

(c)apersonauthorisedinwritingbyamemberorregisteredbondholder.

(5)Thebodycorporatemustcomplywitharequestforinspectionorcopyingunderthisrulewithin10daysunlesstherequestisinrespectoftherules,inwhichcasethebodycorporatemustcomplywiththerequestwithinfivedays.

(6)Thebodycorporatemaychargeafeeforacopyofarecordordocumentotherthantherules,providedthatthefeeisnotmorethanthereasonablecostassociatedwiththeprocessofmakingthecopy,andthebodycorporatemayrefusetosupplythecopyuntilthefeeispaid.

(7)Ifthebodycorporateterminatesitscontractwithanemployeeoramanagingagent,thatpersonmustwithin10daysdelivertothebodycorporateallrecordsreferredtointhisrulethatareintheperson’spossessionorundertheperson’scontrol.

(8)Therecordsreferredtointhisrulemustbeinwritingorinaformthatcanbeeasilyconvertedtowriting.

Executive Managing Agent and Managing Agents

28.(1)Thebodycorporatemay,byspecialresolution,appointanexecutivemanagingagenttoperformthefunctionsandexercisethepowersthatwouldotherwisebeperformedandexercisedbythetrustees.

(2)Membersentitledto25percentofthetotalquotasofallsectionsmayapplytotheCommunitySchemeOmbudServicefortheappointmentofanexecutivemanagingagent.

(3)Anexecutivemanagingagent—

(a)issubjecttoallthedutiesandobligationsofatrusteeundertheActandtherulesofthescheme;

(b)isobligedtomanagetheschemewiththerequiredprofessionallevelofskillandcare;

(c)isliableforanylosssufferedbythebodycorporateasaresultofnotapplyingsuchskillandcare;

(d)hasafiduciaryobligationtoeverymemberofthebodycorporate;

(e)mustarrangefortheinspectionofthecommonpropertyatleasteverysixmonths;and

(f) mustreportatleasteveryfourmonthstoeverymemberofthebodycorporateontheadministrationofthescheme.

(4)Thereportsofanexecutivemanagingagentreferredtoinsub-rule(3)(f)mustincludeatleastthefollowingdetails—

(a)proposedrepairstoandmaintenanceofthecommonpropertyandassetsofthebodycorporatewithinthenextfourmonths;

(b)matterstheexecutivemanagingagentconsidersrelevanttotheconditionofthe

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commonpropertyandtheassetsofthebodycorporate;

(c)thebalanceofeachoftheadministrativeandreservefundsofthebodycorporateonthedateofthereportandareconciliationstatementforeachfund;and

(d)fortheperiodsincetheappointmentoftheexecutivemanagingagentorfromthedateofthelastreport—(i) theexpensesofthebodycorporate,

includingrepair,maintenanceandreplacementcosts;and

(ii)abriefdescriptionofthedateandnatureofalldecisionsmadebytheexecutivemanagingagent.

(5)Thebodycorporatemay,iftrusteessoresolve,andmustifrequiredby—

(a)aregisteredmortgageeof25percentinnumberoftheprimarysections;or

(b)aresolutionofmembers,

appointamanagingagenttoperformspecifiedfinancial,secretarial,administrativeorothermanagementservicesunderthesupervisionofthetrustees.

(6)Amanagementagreementforanymanagingagentmustcomplywiththerequirementsasmaybesetoutintheregulations,.

(7)Amanagementagreementmaynotendureforaperiodlongerthanthreeyearsandmaybecancelled,withoutliabilityorpenalty,despiteanyprovisionofthemanagementagreementorotheragreementtothecontrary—(a)bythebodycorporateontwomonths

notice,ifthecancellationisfirstapprovedbyaspecialresolutionpassedatageneralmeeting,or

(b)bythemanagingagentontwomonthsnotice.

(8)Thebodycorporateortrusteesmaybyordinaryresolutioncancelthemanagementagreementinaccordancewithitstermsorrefusetorenewthemanagementagreementwhenitexpires.

PART 7

PHYSICAL MANAGEMENT

Improvements to common property

29.(1)Thebodycorporatemayontheauthorityofaunanimousresolutionmakealterationsorimprovementstothecommonpropertythatisnotreasonablynecessary.

(2)Thebodycorporatemayproposetomakealterationsorimprovementstothecommonpropertythatarereasonablynecessary;providedthatnosuchproposalmaybeimplementeduntilallmembersaregivenatleast30dayswrittennoticewithdetailsof—

(a)theestimatedcostsassociatedwiththeproposedalterationsorimprovements;

(b)detailsofhowthebodycorporateintendstomeetthecosts,includingdetailsofanyspecialcontributionsorloansbythebodycorporatethatwillberequiredforthispurpose;and

(c)amotivationfortheproposalincludingdrawingsoftheproposedalterationsorimprovementsshowingtheireffectandamotivationoftheneedforthem;

andifduringthisnoticeperiodanymemberinwritingtothebodycorporaterequestsageneralmeetingtodiscusstheproposal,theproposalmustnotbeimplementedunlessitisapproved,withorwithoutamendment,byaspecialresolutionadoptedatageneralmeeting.

(3)Abodycorporatemust,ifsodirectedbyaresolutionofmembers—

(a)installandmaintainseparatemeterstomeasurethesupplyofelectricity,water,gasorthesupplyofanyotherservicetoeachmember’ssectionsandexclusiveuseareasandtothecommonproperty;and

(b)recoverfrommembersthecostofsuchsuppliestosectionsandexclusiveuseareasbasedonthemeteredsupply.

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(4)Abodycorporatemayontheauthorityofaspecialresolutioninstallseparatepre-paymentmetersonthecommonpropertytocontrolthesupplyofwaterorelectricitytoasectionorexclusiveusearea;providedthatallmembersandoccupiersofsectionsmustbegivenatleast60daysnoticeoftheproposedresolutionwithdetailsofallcostsassociatedwiththeinstallationofthepre-paymentsystemanditsestimatedeffectonthecostoftheservicesoverthenextthreeyears.

(5)Ifapre-paymentsystemreferredtoinsub-rule(4)isinstalled—

(a)thebodycorporateisresponsibletoensurethatthesystemdoesnotinfringeontheconstitutionalrightsofsectionoccupierstoaccessbasicservices;and

(b)anymemberwholeasesaunittoatenantisresponsibletoensurethatthesystemdoesnotinfringetherightsofthetenantintermsoftheRentalHousingAct,1999(ActNo.50of1999),oranyotherlaw.

Use of sections and common property

30. Thebodycorporatemusttakeallreasonablestepstoensurethatamemberoranyotheroccupierofasectionorexclusiveuseareadoesnot—

(a)usethecommonpropertysoastounreasonablyinterferewithotherpersonslawfullyonthepremises,inbreachofsection13(1)(d)oftheAct;

(b)useasectionorexclusiveuseareasoastocauseanuisance,inbreachofsection13(1)(e)oftheAct;

(c)contravenetheprovisionsofany—

(i) laworby-lawrelatingtotheuseofasectionoranexclusiveusearea;or

(ii) conditionsofalicenserelatingtouseofthebuildingorthecommonproperty,orthecarryingonofabusinessinthebuilding;or

(iii)conditionsoftitleapplicabletosectionsorexclusiveuseareas;

(d)makealterationstoasectionoranexclusiveuseareathatarelikelytoimpairthestabilityofthebuildingorinterferewiththeuseandenjoymentofothersections,thecommonpropertyoranyexclusiveusearea;

(e)doanythingtoasectionorexclusiveuseareathathasamaterialnegativeaffectonthevalueorutilityofanyothersectionorexclusiveusearea;

(f) subjecttotheprovisionsofsection13(1)(g)oftheAct,useasectionorexclusiveuseareaforapurposeotherthanforitsintendeduseas—

(i) shownexpresslyorbyimplicationonaregisteredsectionalplanoranapprovedbuildingplan;

(ii)canreasonablybeinferredfromtheprovisionsoftheapplicabletownplanningby-lawsortherulesofthebodycorporate;or

(iii)isobviousfromitsconstruction,layoutandavailableamenities;

(g)constructorplaceanystructureorbuildingimprovementonanexclusiveuseareawhichinpracticeconstitutesasectionoranextensionoftheboundariesorfloorareaofasectionwithoutcomplyingwiththerequirementsoftheActandtheSectionalTitlesAct;providedthatthebodycorporatemaybyordinaryresolution—

(i) giveconsentforsuchastructureorbuildingimprovement,iftheyaresatisfiedthatitdoesnotrequirecompliancewithsuchrequirements;

(ii)prescribeanyreasonableconditioninregardtotheuseorappearanceofthestructureorbuildingimprovement;and

(iii)withdrawanyconsentifthememberorotheroccupierofasectionbreachesanysuchcondition.

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Obligation to maintain

31.(1)Notwithstandingthatawater-heatinginstallationformspartofthecommonpropertyandisinsuredbythebodycorporate,amembermustmaintain,repairand,whennecessary,replacesuchaninstallationwhichservesthatmember’ssectionorexclusiveusearea;providedthatwheresuchaninstallationservessectionsownedorexclusiveuseareasheldbymorethanonemember,themembersconcernedmustsharethemaintenance,repairandreplacementcostsonapro-ratabasis.

(2)Ifdespitewrittendemandbythebodycorporate,amemberrefusesorfailsto—

(a)carryoutworkinrespectofthatmember’ssectionorderedbyacompetentauthorityasrequiredbysection13(1)(b)oftheAct;or

(b)repairormaintainasectionownedbythatmemberinastateofgoodrepairasrequiredbysection13(1)(c)oftheAct;

andthatfailurethreatensthestabilityofthecommonproperty,thesafetyofthebuildingorotherwisemateriallyprejudicestheinterestsofthebodycorporate,itsmembersortheoccupiersofsectionsgenerally,thebodycorporatemustremedythemember’sfailureandrecoverthereasonablecostofdoingsofromthatmember;providedthatinthecaseofanemergency,nodemandornoticeneedbegiventothememberconcerned.

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ANNEXURE 2

CONDUCT RULES

Prescribedintermsofsection10(2)(b)oftheSectionalTitlesSchemesManagementAct,2011(ActNo.8of2011).

Keeping of animals, reptiles and birds

1.(1) Theowneroroccupierofasectionmustnot,withoutthetrustees’writtenconsent,whichmustnotbeunreasonablywithheld,keepananimal,reptileorbirdinasectionoronthecommonproperty.

(2)Anowneroroccupiersufferingfromadisabilityandwhoreasonablyrequiresaguide,hearingorassistancedogmustbeconsideredtohavethetrustees’consenttokeepthatanimalinasectionandtoaccompanyitonthecommonproperty.

(3)Thetrusteesmayprovideforanyreasonableconditioninregardtothekeepingofananimal,reptileorbirdinasectionoronthecommonproperty.

(4)Thetrusteesmaywithdrawanyconsentiftheowneroroccupierofasectionbreachesanyconditionimposedintermsofsub-rule(3).

Refuse and waste disposal

2.(1) Theowneroroccupierofasectionmustnotleaverefuseorothermaterialsonthecommonpropertyinawayorplacelikelytointerferewiththeenjoymentofthecommonpropertybyanotherowneroroccupier.

(2)Unlessthebodycorporateprovidessomeotherwaytodisposeofrefuse,theowneroroccupierofasectionmustkeepareceptacleforrefuseofatypespecifiedbythetrusteesinacleananddryconditionandadequatelycoveredinthesection,oronapartofthecommonpropertydesignatedbythetrusteesforthepurpose.

(3)Theowneroroccupierofasectionmust—

(a)movetherefusereceptaclereferredtoinsub-rule(2)toplacesdesignatedbythe

trusteesforcollectionpurposesatthetimesdesignatedbythetrusteesandpromptlyretrieveitfromtheseplaces;and

(b)ensurethattheowneroroccupierdoesnot,indisposingofrefuse,adverselyaffectthehealth,hygieneorcomfortoftheownersoroccupiersofothersections.

Vehicles

3.(1)Theowneroroccupierofasectionmustnot,exceptinacaseofemergency,withoutthewrittenconsentofthetrustees,parkavehicle,allowavehicletostandorpermitavisitortoparkorstandavehicleonanypartofthecommonpropertyotherthanaparkingbayallocatedtothatsectionoraparkingbayallocatedforvisitors’parking.

(2)Aconsentundersub-rule(1)muststatetheperiodforwhichitisgiven.

Damage to common property

4.(1) Theowneroroccupierofasectionmustnot,withoutthetrustees’writtenconsent,mark,paint,drivenails,screwsorotherobjectsinto,orotherwisedamageordefaceastructurethatformspartofthecommonproperty.(2)Anowneroroccupierofasectionmustbeconsideredtohavethetrustees’consenttoinstallalockingorsafetydevicetoprotectthesectionagainstintruders,orascreentoprevententryofanimalsorinsects,ifthedeviceorscreenissoundlybuiltandisconsistentwithadesign,colour,styleandmaterialsapprovedinwritingbythetrustees.

(3)Theowneroroccupierofasectionmustkeepadeviceinstalledundersub-rule(2)ingoodorderandrepair.

Appearance of section and exclusive use area

5.(1) Theowneroroccupierofasectionmustnot,withoutthetrustees’writtenconsent,makeachangetotheexternalappearanceofthesectionoranyexclusiveuseareaallocatedtoit

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unlessthechangeisminoranddoesnotdetractfromtheappearanceofthesectionorthecommonproperty.

(2)Theowneroroccupierofasectionmustnot,withoutthetrustees’writtenconsent—

(a)erectwashinglinesonthecommonproperty;

(b)hangwashing,laundryorotheritemsinasectionoranyexclusiveuseareaallocatedtoitifthearticlesarevisiblefromanothersectionorthecommonproperty,orfromoutsidethescheme;or

(c)displayasign,notice,billboardoradvertisementifthearticleisvisiblefromanothersectionorthecommonproperty,orfromoutsidethescheme.

Storage of flammable materials

6.(1) Subjecttosub-rule(2),theowneroroccupierofasectionmustnot,withoutthetrustees’writtenconsent,storeaflammablesubstanceinasectionoronthecommonpropertyunlessthesubstanceisusedorintendedforusefordomesticpurposes.

(2)Thisruledoesnotapplytothestorageoffuelorgasin—

(a)thefueltankofavehicle,boat,generatororengine;or

(b)afueltankorgascylinderkeptfordomesticpurposes.

Behaviourofoccupiersandvisitorsinsectionsandoncommonproperty

7.(1)Theowneroroccupierofasectionmustnotcreatenoiselikelytointerferewiththepeacefulenjoymentofanothersectionoranotherperson’speacefulenjoymentofthecommonproperty.

(2)Theowneroroccupierofasectionmustnotobstructthelawfuluseofthecommonpropertybyanyotherperson.

(3)Theowneroroccupierofasectionmusttakereasonablestepstoensurethattheowner

oroccupier’svisitorsdonotbehaveinawaylikelytointerferewiththepeacefulenjoymentofanothersectionoranotherperson’speacefulenjoymentofthecommonproperty.

(4)Theowneroroccupierofasectionisobligedtocomplywiththeseconductrules,notwithstandinganyprovisiontothecontrarycontainedinanyleaseoranyothergrantofrightsofoccupancy.

Eradication of pests

8.(1) Theownerofasectionmustkeepthesectionfreeofwood-destroyinginsects,includingwhiteantsandborerbeetles.

(2)Theowneroroccupierofasectionmustallowthetrustees,themanagingagent,ortheirdulyauthorisedrepresentativestoenterthesectiononreasonablenoticetoinspectitandtakeanyactionreasonablynecessarytoeradicateanysuchpestsandreplacedamagedwoodworkandothermaterials.

(3)Thebodycorporatemustrecoverthecostsoftheinspectionandreplacementreferredtoinsub-rule(2)fromtheownerofthesection.

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ANNEXURE 3

Form A:Notification of change of body corporate address

Sectional Titles Schemes Management Act, 2011 – Section 3(1)(o)SCHEME DETAILS:NameofScheme:

SSNumber/year: (firstnumber,ifmorethanone)LocalMunicipalityname:To:1.CommunitySchemeOmbudService

2.LocalMunicipality3.RegistrarofDeedsAddress Details: (insert below the body corporate’s physical service address, its domicilium citandi et executandiProvince:Municipality:City:Suburb:Physicaladdress:We, the undersigned trustees and (where applicable) managing agent of the body corporate of the above scheme give notice that, in accordance with the requirements of the Act and the rules of the scheme, the body corporate has changed its domicilium citandi et executandi, its address for service of any process, to the above addressEffectivedateofaddresschange (tobeinsertedbyService) D D M M Y Y Y YTO BE SIGNED BY TWO TRUSTEES AND ANY MANAGING AGENT:NamesanddetailsoftheTrusteesofaSectionalTitleBodyCorporate,theBoardofDirectorsofaShareBlockCompanyormanagementassociationoftheHousingSchemeforRetiredPersonsortrusteesofanAssociation.AnychangetotherepresentativemustbecommunicatedtotheServicebysubmittingFormA1attachedhereto.AcopyoftheResolutionappointingtheExecutiveCommitteemustbeattached.Fullname:Capacity:Signature:

Date:

D D M M Y Y Y Y

Fullname:Capacity:Signature:

Date:D D M M Y Y Y Y

Fullname:Capacity:Signature:

Date:D D M M Y Y Y Y

CONFIRMATION OF LODGMENT OF NOTIFICATION: FOR CHIEF OMBUD – COMMUNITY SCHEME OMBUD SERVICEFullname:Capacity:Signature:

Date:

D D M M Y Y Y Y

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Form B: Notification of amendment of rules

Sectional Titles Schemes Management Act, 2011 – Section 3(1)(o)SCHEME DETAILS:NameofScheme:

SSNumber/year: (firstnumber,ifmorethanone)LocalMunicipalityname:TO: COMMUNITY SCHEME OMBUD SERVICEWe, the undersigned trustees and (where applicable) managing agent of the body corporate of the above scheme give notice that, in accordance with the requirements of the Act and the rules of the scheme and on the following date, the body corporate made the rules set out in the schedule attached to this notice and initialed by us for identification. Daterulesadopted: (tobeinsertedbeforesignature) D D M M Y Y Y YTO BE SIGNED BY TWO TRUSTEES AND ANY MANAGING AGENT:NamesanddetailsoftheTrusteesofaSectionalTitleBodyCorporate,theBoardofDirectorsofaShareBlockCompanyormanagementassociationoftheHousingSchemeforRetiredPersonsortrusteesofanAssociation.AnychangetotherepresentativemustbecommunicatedtotheServicebysubmittingFormA1attachedhereto.AcopyoftheResolutionappointingtheExecutiveCommitteemustbeattached.Fullname:Capacity:Signature:

Date:

D D M M Y Y Y Y

Fullname:Capacity:Signature:

Date:D D M M Y Y Y Y

Fullname:Capacity:Signature:

Date:D D M M Y Y Y Y

CONFIRMATION OF LODGMENT OF NOTIFICATION: FOR CHIEF OMBUD – COMMUNITY SCHEME OMBUD SERVICEFullname:Capacity:Signature:

Date:

D D M M Y Y Y Y

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Form C: Notification, appointment of proxy and acceptance of mandate

Sectional Titles Schemes Management Act, 2011 – Section 3(1)(o)Note:Intermsofsection6(5)oftheSectionalTitlesSchemesManagementAct2011amembermustberepresentedinpersonorbyproxyatmeetingsofbodycorporateandapersonmaynotactasaproxyformorethantwomembersofthebodycorporate.

SCHEME DETAILS:NameofScheme:SSNumber/year: (firstnumber,ifmorethanone)LocalMunicipalityname:TO THE BODY CORPORATEI/We, the undersigned owner(s) and member(s) give notice to the body corporate of the above scheme that I/we appoint a proxy to speak and vote at the general meetings (including adjournments) and on the terms set out below. Membername(s):Unitnumbers:Proxyname(insertonefullname):THIS APPOINTMENT APPLIES TO: (TICK ONE OF THE FOLLOWING AND COMPLETE AS NECESSARY)

Thegeneralmeetingtobeheldon

D D M M Y Y Y Y

Allgeneralmeetingsheldbefore:D D M M Y Y Y Y

Allgeneralmeetingsuntilandincludingthebodycorporate’snextannualgeneralmeeting D D M M Y Y Y Y

SPECIAL CONDITIONS OR INSTRUCTIONS TO PROXY: (IF LEFT BLANK, THE APPOINTMENT IS UNCONDITIONAL)

SIGNATURE(S) OF MEMBERS GIVING MANDATESignature:

Date:

D D M M Y Y Y YSignature:

Date:D D M M Y Y Y Y

Signature:

Date:D D M M Y Y Y Y

SIGNATURE OF PERSON ACCEPTING MANDATESignature:

Date:D D M M Y Y Y Y

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Complaint Form

Annexure 4 to the regulations under the Sectional Title Schemes Management Act, No. 8 of 2011 STSM Ann. 4.1 (10/11)

UsethisformtonotifytheBodyCorporateandpersonsagainstwhomyouaremakingthecomplaint,whomustbeaunitowner,occupierorthemanagingagent.

DETAILS OF PERSON MAKING THIS COMPLAINT:Fullnames:Unitnumber(s)(ifapplicable)SectionAddress:NameandnumberofScheme:Province:Postcode:PostaladdressofComplainant(ifdifferentfromabove):WHICH TYPE ARE YOU? (TICK ONE BOX):

1.Unitowner2.Unittenant3.Otheroccupier4.Managingagent

DETAILS OF PERSON(S) YOU ARE MAKING THE COMPLAINT AGAINSTPerson(s)name(s):Address(includeunitnumber,ifapplicable)TypeNo:

DETAILS OF THE RELEVANT RULE, SECTION OF THE ACT OR REGULATION:Identifywhichprovision(s)is/areapparentlybeingbreachedornotbeingcompliedwith:

SELF-HELP ACTION TAKEN:Whathasbeendonetotrytoresolvethiscomplaint?Pleasedescribewhatyouhavedone,whoyouhavetalkedtoandwhattheyofferedtodo:PROPOSED SOLUTION OR ACTION:Whatremedyareyourequesting?Howdoyouwanttheproblemtobesolved?DECLARATION AND SIGNATURE OF COMPLAINANT:Ideclarethattheaboveinformationistrueandcorrecttothebestofmyknowledge.IagreethattheinformationIhavegiveninthisformmaybeusedordisclosedbythebodycorporatetoprocessandresolvethiscomplaint.Signature:Date:

D D M M Y Y Y YTHE COMPLAINANT MUST DELIVER A COPY OF THIS COMPLETED AND SIGNED FORM TO THE BODY CORPORATE AND MUST KEEP A COPY AND PROOF OF DELIVERY

Delivery method:Bypost(nameandpostaladdress): Inpersonby:

Contacttelephonenumberforcomplaint(s): Contactemailaddressforcomplainant(s):

RecordofBodyCorporateDecision

DateofNotice

33

Annexure 4 to the regulations under the Sectional Title Schemes Management Act, No. 8 of 2011 STSM Ann. 4.2 (10/11)

FROM: NAME AND NUMBER OF SCHEMENameandnumberofScheme:TO: (PERSON/S THAT MADE COMPLAINT AND PERSON/S WHO ALLEGEDLY COMMITTED BREACH)Person/sname/s:AddressDESCRIPTION OF COMPLAINT: (BRIEF DETAILS OF COMPLAINT/ALLEGED BREACHPerson(s)name(s):DETAILS OF THE RELEVANT RULE, SECTION OF THE ACT OR REGULATION:Identifywhichprovision(s)is/areapparentlybeingbreachedornotbeingcompliedwith:

OUTCOME OF INTERNAL DISPUTE RESOLUTION MEETING: (DESCRIPTION

DECISION OF BODY CORPORATE: (DESCRIPTION AND REASONS FOR DECISION

THIS NOTICE IS SERVED BY:Signatureofpersonrepresentingbodycorporate:

Printedname:Position/Title:Address:Contacttelephonenumber:Emailaddress(ifapplicable):Date:

D D M M Y Y Y YIMPORTANT NOTICE:* If any party to this dispute is not satisfied with the decision that party can make an application to the Community Schemes Ombud Service for assistance.