31 May What is a Quorum?
The Sectional Title Act states clearly that a general meeting of owners will not proceed if a quorum is not present. A quorum is the number of attendees required at the annual general meeting for the meeting to proceed, be it in person or by proxy.
The quorum will be determined by the number of sections in the scheme as follows:
- In a scheme where there are 10 sections or less, a quorum will be determined as 50% of the number of sections;
- In a scheme where there are less than 50 sections but more than 10, the quorum will be determined as 35% of the number of sections;
- In a scheme where there are more than 50 sections, the quorum will be determined as 20% of the number of sections.
An owner who is unable to attend a general meeting may appoint a proxy to attend the meeting on their behalf. The appointed proxy will have the same value in contributing to the quorum as if the owner was attending in person.
What happens if a quorum is not reached?
If the required quorum is not present within 30 minutes of the start time of the general meeting, the meeting cannot proceed and no business relating to the meeting can be discussed. The meeting is then adjourned and must take place within 7 days from the adjourned date of the meeting. The managing agent must inform the owners in writing the day after the adjourned meeting of the new date, time and venue of the meeting.
In the case of an adjourned meeting, the quorum requirements will not apply and any number of persons present in person or by proxy will form the quorum for the meeting.
See other blogs from this series ANNUAL GENERAL MEETINGS: 6 Key Questions
- Which documents are needed by owners before the AGM?
- When should an AGM be held and how much notice is needed?
Author: Leigh Maingard – MD Stonewood Properties
Stonewood Properties is a professional property management company that specialises in administrating community schemes such as sectional title bodies corporate, homeowners’ associations (HOA) and residential estates in Johannesburg and Cape Town.