A Paddocks Sectional Title Lifestyle Blog
By Dr Carryn Melissa Durham
Administering a sectional title scheme can involve some major paper pushing. The trustees have a duty to maintain the records on behalf of the body corporate. There are various documents that need to be prepared, stored and made available for inspection. This article will set out the records that the trustees are obliged to keep.
In terms of prescribed management rule (“PMR”) 32(1), the trustees must keep a complete record of all rules in force, and must ensure that any amendment, substitution, addition or repeal of such rules, as contemplated in section 35(5) of the Sectional Titles Act 95 of 1986 (“the Act”), is submitted to the relevant Registrar of Deeds for filing as contemplated in section 35(5)(c) of the Act.
In terms of PMR 32(2), the trustees must supply a copy of the rules in force to the following persons on their application:
The trustees may require the applicant to pay a reasonable administrative charge for supplying a copy of the rules.
In terms of PMR 34(1), the trustees must keep minutes of their proceedings; as well as minutes of all meetings of the body corporate in a minute book. A record of every unanimous resolution, special resolution and any other resolution of the body corporate must also be kept in the minute book.
In terms of PMR 34(2), the trustees must keep all minute books in perpetuity – this means for the duration of the scheme’s existence. Furthermore, on the written application of any owner or registered mortgagee of a unit, the trustees must make all minutes of their proceedings and the minutes of the body corporate, available for inspection by any owner or mortgagee.
In terms of PMR 49(2), the trustees must furnish the managing agent with copies of the minutes of all meetings of the trustees and of the body corporate.
Books of account and records
In terms PMR 35(1), the trustees must keep proper books of account and records so as to fairly explain the transactions and financial position of the body corporate. These books of account and records include:
In terms of PMR 35(3), the trustees must retain all books of account and records for a period of six (6) years after completion of the transactions, acts or operations to which they relate.
In terms of PMR 35(2), the trustees must make all or any of the books of account and records available for inspection on the application of any owner, registered mortgagee or of the managing agent. Additionally the body corporate has the duty to comply with any reasonable request for the names and addresses of the persons who are the trustees of the body corporate, or who are members of the body corporate in terms of section 37(1)(l) of the Act.
Annual financial estimate, financial statement and chairperson’s report
In terms of PMR 36, the trustees must, prior to the commencement of each financial year, prepare (or cause to be prepared) the following documents:
The insurance schedules, budget, audited financial statement and trustees’ report must be delivered to each owner at least fourteen (14) days before the annual general meeting for consideration and approval by the body corporate.
Finally, the trustees must, on behalf of the body corporate, produce to any owner or mortgagee, or any person authorised in writing by such owner or mortgagee, on their written request, the policy or policies of insurance effected by the body corporate and the receipt or receipts for the last premium or premiums in respect thereof in terms of section 37(1)(q) of the Act.
If you have any queries with regard to the records of the body corporate, please contact us at email@example.com.
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