Key points from the NAMA flagship seminar (22 April)

The sectional title industry has changed dramatically since 6 October 2016 – the day the new Sectional Titles Schemes Management Act took effect.

The responsibilities placed on trustees and specifically on managing agents have increased overnight. Managing agents aiming to stay relevant in the sectional title industry had to quickly familiarise themselves with new legislation and operational procedures.

A recent seminar presented the perfect opportunity to improve and update our knowledge. This blog includes some key points from the NAMA flagship seminar hosted in Cape Town on Saturday, 22 April 2017.

Notices of general meetings

Notices of special general meetings where either a unanimous or special resolution are tabled for consideration and approval must be sent by registered mail to all members. Members in a scheme may be asked to provide an alternative service address other than the address of the primary unit, i.e. the address of the unit in the scheme. This allows for better communication between the body corporate and its members.

An annual general meeting notice can be sent via e-mail and does not need to be sent by mail or registered mail. If it is sent by mail, the only requirement is that it must be sent to the service address of the primary unit, i.e. the address of the unit in the scheme.

The notice period of an annual general meeting may only be changed if all the owners come to an agreement. A special general meeting where a unanimous or special resolution will be considered and voted on may not be changed unless the rules of the body corporate are amended to allow for a change in the required notice period.

Voting at general meetings

Any meeting other than an annual general meeting is called a special general meeting.

Voting at an annual general meeting is tabulated by calculating the participation quota value of each member to determine if a vote is passed or not.

Where voting on a special or unanimous resolution takes place at a special general meeting, the voting process requires the number of sections voting for or against the specific resolution to be stated. The resolution cannot be adopted if both the vote in participation quota value and by sections do not pass the required value.

Trustee meeting resolutions

A quorum is required before a trustee meeting may proceed. Sometimes a quorum is not present but the attending trustees still wish to deal with some of the business on the agenda. Although there is no quorum, the trustees present are allowed to discuss business and make interim resolutions which must then be ratified at the next trustee meeting where all trustees are present, or where a quorum is present.