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. Previous Management rules (“PMR”) 57 and 58 contained in Annexure 8 to the Regulations...
Management Rule 56 of the Sectional Title Act states what business should be conducted at the annual general meeting of a body corporate. The documents or information that an owner must receive is: The annual financial statements The financial statements will be the statements for the immediate preceding financial year. The trustees would have reviewed the statements prior to it being included...
When should AGMs be held? The annual general meeting (AGM) of a body corporate is required to be held within four months following the end of the financial year. During the period that immediately follows the end of the financial year; the appointed auditors must perform an audit of the financial affairs of the body corporate and submit financial statements to...
In the original blog, we discussed the 6 key topics you need to be familiar with before attending your next AGM. This blog covers point 1 (Why is an AGM necessary and why should you attend?) in more detail: A body corporate is a legal entity that collects levies (income) from its members and disburses this income by way of payments...
Annual General Meetings (AGM`s) may seem daunting or laborious when you first acquire a property in a sectional title scheme but it is an important and necessary responsibility. The Sectional Titles Act 95 of 1986 governs Annual General Meetings (AGMs) in sectional title schemes and it determines the outcome an owner can expect when attending an AGM. 1. Why is an AGM...