While many schemes have their financial year-end in February or June, it will vary from scheme to scheme. Regardless of the month in which the financial year falls, a body corporate must prepare an administrative budget for submission at the annual general meeting (AGM). To do this, the trustees must plan to allow themselves the time to put together an...
While most bodies corporate rely solely on levy income, some try to find additional ways to bolster their income. One additional source is to rent common property to members of the scheme or to third parties. Who decides if common property can be rented? Trustees are responsible to manage, administer and maintain common property which collectively belongs to all scheme members in...
The appointment of a body corporate chairperson rests with the trustees elected at each annual general meeting (AGM). This appointment is not made by the members in the scheme but by the elected trustees at the first trustee meeting following the AGM. The chairperson has many duties that they need to fulfil, least of which is to chair and run the...
A common question regarding trustees at the annual general meeting (AGM) is about the number of trustees that need to be appointed. Curiously, there is no definitive answer or legislative guidance to provide light on this subject, making this an interesting question to delve into. Legislative requirements In a new sectional title development, all the registered owners are trustees until the first general meeting of the body...
One of the most confusing terms in sectional title is exclusive use areas (EUAs). Owners with exclusive use rights are often the first who find themselves unfamiliar with their obligations regarding EUAs. Types of exclusive use areas EUAs can be defined as areas that are part of the common property of a scheme for the exclusive use of certain owners. An owner enjoying exclusive rights to an...