Amend Body Conduct Rules

Amend Body Conduct Rules from TMS Pro Property Management

By: TMS Pro Property Management  02-08-2016
Keywords: sectional title conduct rules, Sectional Title Gauteng,

How to Amend Body Corporate Rules Step-by-Step 1. Draft the amendment/additional rule You may be able to do this yourself or you may require the services of a sectional title attorney to draft it for you. Things to keep in mind:  All rules must be reasonable and apply equally to units put to substantially the same purpose (eg. A rule can’t advantage one residential owner above another).  A Conduct Rule cannot conflict with a prescribed Management Rule or provision of the Act and a Management Rule cannot conflict with a provision of the Act. 2. Check if the written consent of any owner is required If the proposed amendment/additional rule will result in an owner’s vote counting for less, having to pay more levies or if an owner’s proprietary rights are affected then that owner will have to give his/her written consent. 3. Send notice of the meeting The notice of the meeting must specify the proposed resolution and must be sent to owners and bondholders at least thirty days prior to the meeting date. 4. Make sure a quorum is present at the meeting The quorum requirement will differ depending on whether the proposed amendment/addition is to the Management or Conduct Rules: Management Rules – a unanimous resolution is required A quorum of 80% of owners in number (i.e. 80% of the actual number of owners in the scheme) and value (i.e. owners representing 80% of the participation quotas) must be present or represented at a meeting at which a unanimous resolution is to be taken. Conduct rules – special resolution required Only an ordinary quorum is required for a meeting at which a special resolution is to be taken. The ordinary quorum requirement differs depending on the number of units in the scheme: • Ten units or less: 50% of owners • Between 11 and 49 units: 35% of owners • 50 units or more: 20% of owners 5. The required number of votes must be obtained Management Rule – Unanimous resolution: every person present or represented at the meeting must vote in favour of the resolution, with abstentions being counted as votes in favour. Even one vote against the resolution effectively defeats it. Conduct Rule – Special resolution: 75% in number and value of those present or represented at the meeting must vote in favour of it. Abstentions are not counted as votes in favour, and votes against do not defeat the resolution. 6. Make sure the outcome of the vote is minuted The minutes of the meeting will serve as a permanent record in the body corporate’s minute book of the decision made. 7. Fill in Form V Two trustees must then fill out a Form V to file the changes in the scheme’s file at the Deeds Registry. 8. File at the Deeds Office The amendment/addition only becomes effective on the date of filing in the scheme’s file held at the Deeds Office. Therefore, the completed Form V and the initialled rule(s) must be handed in to the Deeds Office for filing. It is a good idea to take a copy of the Form V and initialled rules when you hand the originals in for filing so that you can get your copy date-stamped as proof of the date on which the amendment was received by the Deeds Office, and as proof of what should now be in the scheme’s file. So there you have it! Have you amended or added to your scheme’s rules? How did it go for you?

Keywords: sectional title conduct rules, Sectional Title Gauteng,

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