Two reasons for special meeting

2016-09-21 06:00


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I HAVE been appointed as a trustee for our new sectional title scheme.

I understand the requirements for calling an annual general meeting.

However, I am a bit worried about when we should hold special general meetings in the scheme.


There are two types of meetings that can be held in a sectional title scheme.

The one meeting is an annual general meeting (AGM), and the other type is a special general meeting (SGM).

Of the two, the AGM is probably the most important.

The SGM comprises all other general meetings held in the scheme that is not an AGM.

A SGM may be called by the trustees whenever they think fit.

It must be called upon a written request made by owners entitled to 25% of the total of the participation quotas of all sections.

It can also be called upon by any mortgagee holding mortgage bonds over at least 25% in number of the units in the scheme.

Should the trustees fail to call such a meeting within 14 days of being so requested, the owners or mortgagee concerned shall be entitled to call the meeting themselves.

The most common reason for calling for the SGM is to adopt a unanimous or special resolution in writing.

A unanimous resolution usually involves a decision needed for, among others, luxurious improvements and changes to the management rules.

A special resolution usually involves, among others, a decision needed for non-luxurious improvements, claims against the developer, the changing or cancelling of exclusive use areas and the changes to the conduct rules of the scheme.

Importantly, always make sure you comply with the required notice period and quorum before any resolutions are taken at the SGM.

If you are not sure about the compliance requirements, obtain the assistance of a property specialist.

The property specialist will help to ensure that all your SGM meeting procedures are met and that valid decisions are taken.

Corlia van Zyl, associate, Phatshoane Henney Attorneys

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