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Body corporate meetings - Part 1

Category Property Management

Body corporate meetings - Part 1 - Trustee Meetings
Article by Zerlinda van der Merwe - Paddocks

There are 3 different types of meetings in sectional title schemes, namely trustee meetings, annual general meetings, and all other general meetings, which are called special general meetings. In this 3 part series of articles, I will be unpacking each type of meeting, dealing with the notice, quorum and voting requirements of each.

Trustee meetings
In this first article, we will be dealing with trustee meetings. In terms of Prescribed Management Rule ("PMR") 9(a) of Annexure 1 of the Regulations to the Sectional Titles Schemes Management Act, 8 of 2011 ("the STSMA"), the trustees must meet to carry out the body corporate's business, adjourn and otherwise regulate their meetings as they think fit, subject to the provisions of the STSMA, the PMR's and the common law of meetings.

Notice
Any one trustee may at any time call a meeting by giving all the other trustees written notice of a minimum of 7 days, including the time and place of the meeting, as well as the agenda, as required by PMR 11(1). Should the meeting be required to be called as a matter of urgency, a reasonable notice period may be given.

If any of the trustees are outside of the Republic of South Africa, notice does not have to be sent to them, but should a replacement trustee have been appointed for such trustee/s, they will need to be given notice. In the alternative, in terms of PMR 11(2), the trustees may set dates and a standard agenda for any future meetings, which will replace the need to send a notice out for each meeting. Should any attendee, as will be dealt with herein, submit a written request of trustee meetings, the trustees must deliver a copy of the notice and any adjournment thereof.

Trustees may further partake in meetings by teleconference or similar methods, provided that the method is accessible to all trustees and attendees, it allows the participants to communicate, and permits the chairperson to confirm the identity of the participants.

Attendance
In terms of PMR 11(3), members, registered bondholders, holders of future development rights and the body corporate's appointed managing agent may attend the meetings, and may further speak on any matter on the agenda. However, no one, other than the trustees, may propose any motion or vote.
Should any part of the meeting deal with issues relating to contraventions of the STSMA and the rules of the body corporate, or any matter that the trustees resolve that the presence of the attendees will unreasonably interfere with the interests of the body corporate or a person's privacy, the trustees may request that any such attendees leave the meeting.

Quorum
At a meeting, 50% of the trustees, but not less than 2, form a quorum, in terms of PMR 13(1). Should the quorum not be reached within 30 minutes of the due start time for the meeting, the trustees present, but not less than 2, must, in terms of PMR 13(3), adopt interim resolutions, taking effect when confirmed at the next quorate meeting, or by written resolution of all the trustees, in terms of PMR 13(4).

Voting
At the meeting, a motion proposed by any one trustee does not need to be seconded, and must be determined by a resolution of the majority of the trustees present and voting, in terms of PMR 14(1). Each trustee, in terms of PMR 14(2), has only one vote in number, except the chairperson, who has a casting vote if there is a tie in votes.
A trustee, who has any direct or indirect personal interest in a matter to be discussed, considered or voted on by the trustees, including any contract to which the trustee is a party, is disqualified from voting, as set out in PMR 14(3). Furthermore, in terms of PMR 6(3), should a trustee have such an interest, they must not be present at, or play any part in the consideration or decision of the matter.

Minutes
In terms of PMR 9(e), the trustees must compile minutes of each meeting, and distribute these to the persons entitled to receive notice of the meeting not later than 7 days after the meeting. Furthermore, in terms of PMR 27(4), any member may request access to, or copies of, such minutes within 10 days of their written request.

If you have any queries relating to this article and topic, feel free to contact the writer, Zerlinda van der Merwe, via email at consulting@paddocks.co.za or telephonically on 021 686 3950, for a non obligation quotation for a consultation.

Article reference: Paddocks Press, Volume 14, Issue 2, 27 Feb 2019
http://www.paddocks.co.za/articles/
This article is published under the Creative Commons Attribution license.

Author: Zerlinda van der Merwe - Paddocks

Submitted 07 Jun 19 / Views 2781