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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
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.