MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Complexities of mismanagement

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Our experts have been called on once again to deal with mismanagement problems in a sectional title complex.

One of our readers is a trustee for the complex in which he lives. He complains that he is always outvoted on matters he feels are important and in line with his vision for the complex.

He claims that the complex is not being properly maintained and that the gardens are not being kept tidy. Despite the imprudent use of existing funds, the monthly levies continue to increase and are reasonably high.

The reader is concerned that the saleability of his unit is being affected by the shabby appearance of the complex as a whole.

“As we have mentioned before, a sectional title scheme or complex is controlled and managed by a body corporate,” says Charl Crous from Du Toit Strömbeck Attorneys in Port Elizabeth.

“The body corporate comes into existence from the date on which any person other than the developer becomes an owner of a unit in a registered scheme.”

Crous says the developer and every person registered as the owner of a unit automatically become members of the body corporate in terms of section 36 of the Sectional Titles Act of 1986.

“Of course, practically speaking, there may be too many owners in a sectional title scheme to form a working committee that executes the decisions of the body corporate,” says Crous.

“The Act therefore makes provision for the body corporate to appoint trustees to take care of the management of the complex.”

Crous says these trustees are appointed at the annual general meeting by the unit owners in the complex. “The trustees then appoint a chairperson and are expected to act honestly and in the best interests of the body corporate.”

According to Charlotte Vermaak from Chas Everitt in PE, it is up to the trustees to consider what needs to be done in the complex and to set a budget every year. “The budget is then presented to the body corporate at the annual general meeting.”

Vermaak says the body corporate can then either accept it or require changes to be made. “It is clear therefore that there is a responsibility on all the members of the body corporate to thoroughly examine the proposed budget before accepting it.”

However, in the event of continued mismanagement by the trustees, says Vermaak, the body corporate has the option of not re-electing these trustees.

“Members must therefore ensure that the people who are voted into this important role are competent and responsible,” says Vermaak.

“Unfortunately for our reader, if the body corporate accepts the budget – and it is to all intents and purposes sensible – then, despite his objections to its content, there is little to be done.”

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Fullstop

Full Stop Communications is a public relations consultancy in Port Elizabeth in the Eastern Cape of South Africa focusing on media relations and copywriting. We drive regional and national media campaigns in a number of fields, most notably in the property, legal and sports arenas. We also specialise in media monitoring, ghostwriting, editing, translation and advertising. See more articles by Full Stop.