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Cheat sheet: summary of consent levels for body corporate decisions

cheat sheet summary

In sectional title schemes there is often confusion about what level of body corporate consensus is required for certain decisions. Is a simple majority enough or do we need a special or unanimous resolution? When is the written consent of all owners required?

I thought I’d give you a summary of some of the decisions set out in the Sectional Titles Act and the Prescribed Rules and what level of consensus is required for them. Please note that this is not intended to be a fully comprehensive list.

 

Ordinary resolution

(simple majority vote):

  • approval of the budget – PMR 31(2) and 56
  • approval of insurance – PMR 56
  • appointment of an auditor or accounting officer – PMR 56
  • determination of the number of trustees – PMR 4 and 56
  • election of trustees – PMR 56
  • removal of trustees – PMR 13
  • removal of the chairperson – PMR 19
  • appointment of an alternate chairperson to chair a general meeting when chairperson not present – PMR 59
  • appointing a trustee to take the place of one who has been removed – PMR 14
  • the giving of directions or restrictions to the trustees in terms of section 39(1) of the Act – PMR 56
  • the determination of the body corporate’s service address – PMR 3 and 56
  • the decision to approach the court to obtain a unanimous resolution – section 1(3A) of the Act
  • instruction to trustees to appoint a managing agent – PMR 46
  • suing in respect of any contract or damage to the common property – section 36(6) of the Act

    Special resolution

    (At a meeting – ordinary quorum and 75% in number and value to vote in favour. By round robin – 75% of all owners in number and value to vote in favour)

  • adding to, amending or repealing conduct rules – section 25 of the Act
  • authorising the extension of a section – section 24 of the Act
  • authorising the creation of exclusive use areas in terms of section 27A of the Act – section 27A of the Act
  • cancelling a section 27 exclusive use area – section 27 of the Act
  • making servitudes that burden or benefit the land – section 29 of the Act
  • making rules in terms of section 32(4) of the Act that provide for different voting values or contribution liability (also need written consent of adversely affected owners) – section 32 of the Act
  • suing the developer in respect of the scheme – section 36 of the Act
  • deciding that the body corporate must insure against more than the prescribed risks – PMR 29
  • authorising remuneration for an owner-trustee – PMR 10
  • authorising non-luxurious improvement to the common property (if any owner requests a meeting to discuss and vote on the issue after trustees have notified owners of their intention to proceed with improvement) – PMR 33
  • revoking the managing agent’s appointment – PMR 46
  • deciding to hold a special general meeting outside of the magisterial district – PMR 54

    Unanimous resolution

    (at a meeting – 80% quorum and all to vote in favour with abstentions counting as votes in favour. By round robin – all owners to vote in favour)

  • adding to, amending or repealing management rules – section 35 of the Act
  • authorising a luxurious improvement to the common property – PMR 33
  • directing body corporate to alienate or let all or part of the common property – section 17(1) of the Act
  • authorising the creation of section 27 exclusive use areas or exclusive use areas in terms of the management rules under section 27A – sections 27 and 27A of the Act
  • decision to cede registered exclusive use rights to owners – section 27 of the Act
  • deciding that the buildings are deemed to be destroyed – section 48 of the Act
  • deciding to rebuild/reinstate buildings if buildings have been damaged or destroyed, or not to do so – section 48 of the Act

    Written consent of all owners

  • to exercise or alienate a future development right – section 25 of the Act
  • to purchase or otherwise acquire land to extend the common property – section 26 of the Act
  • to authorise a section or exclusive use area to be used for a purpose other than shown on the sectional plan – section 44 of the Act

 

Written by Jennifer Paddock

http://paddocksblog.com/2013/08/23/cheatsheet-summary-of-consent-levels-for-body-corporate-decisions/?utm_source=paddocks_press&utm_medium=email&utm_content=pp_1308_paddocks_press_email_jen&utm_campaign=pp_1308

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