A Paddocks Sectional Title Lifestyle Blog
By Jennifer Paddock
Getting a quorum for an AGM or SGM can be as hard as finding a sectional title scheme without a VIP (Very Impossible Person! – Ok, I admit I stole that term from a colleague, but it’s too good not to share!!).
Our legislation tries to address this widespread owner apathy by providing an automatic adjournment provision in Prescribed Management Rule 58. It states that:
Other jurisdictions address this issue differently and having worked in strata title in Victoria, Australia and having worked in sectional title here in South Africa I can tell you that…
I think the Aussies have a Better Idea…
The Owners Corporations Act 2006 provides that should a quorum not be present for an AGM, the meeting can proceed but all resolutions passed at the meeting are ‘interim resolutions’.
It requires that notice of the interim resolutions passed at the meeting as well as the minutes of the meeting must be forwarded to all owners within 14 days of the meeting and the minutes must be accompanied by a statement notifying all owners that:
It sounds complicated but the effect is beautifully simple – interim resolutions become resolutions of the body corporate and can be acted upon 29 days after they are made should no SGM be called. The interim resolutions are effectively suspended for the 29 day period to give owners a chance to be notified of them and, if necessary, object through requisitioning a SGM.
The Owners Corporations Act also makes provision for interim special resolutions that allow special resolutions to be taken in a similar manner, but with higher levels of consensus required.
So the question on my lips is could a body corporate in South Africa amend PMR 58 to remove the provision for automatic adjournment when a quorum is not present and insert a provision, similar to the one set out above, allowing for interim resolutions to be taken?
After having discussed this issue with the other sectional title experts at Paddocks we think it can be done fairly easily for ordinary resolutions, but it would be trickier, although not impossible for special resolutions. It would all come done to the wording of the rule – which of course we’d recommend you have drafted by a specialist sectional title attorney 🙂
What do you think about this concept of interim resolutions? Would it beneficial for schemes in SA? Share with us by commenting below.
Image source: http://www.toxicards.com