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Sectional Titles Schemes Management Act, 2011 (Act No. 8 of 2011)

16. Appointment of administrators



1) A body corporate, a local municipality, a judgment creditor of the body corporate or any owner or other person having a registered real right in or over a unit may apply to a Magistrate’s Court for the appointment of a suitably qualified and independent person to serve as the administrator of the body corporate.


a) If a Magistrate’s Court on hearing the application referred to in subsection (1) finds—
i) evidence of serious financial or administrative mismanagement of the body corporate; and
ii) that there is a reasonable probability that, if it is placed under administration, the body corporate will be able to meet its obligations and be managed in accordance with the requirements of this Act, the Magistrate’s Court may appoint an administrator for a fixed period and on such terms and conditions as it deems fit.
b) The remuneration and expenses of the administrator are administrative expenses contemplated in section 3(1)(a).


3) An administrator has, to the exclusion of the body corporate, such powers and duties of the body corporate as the Magistrate’s Court directs and must exercise these powers to address the body corporate’s management problems as soon as reasonably possible.


4) The administrator must—
a) convene and preside at the meetings required in terms of this Act and the scheme’s rules; and
b) lodge with the ombud
i) copies of the notices and minutes of meetings; and
ii) written reports on the administration process every three months or at such shorter intervals as the Magistrate’s Court may direct.


5) A Magistrate’s Court may, on application by the administrator or any person or body referred to in subsection (1)—
a) remove the administrator from office;
b) replace the administrator;
c) extend the term of the administrator’s appointment or amend his or her terms of appointment; and
d) may make such order for the payment of costs as the Magistrate’s Court considers fit.


6) The provisions of subsection (4) apply, with the necessary changes required by context, to the administrators appointed in terms of section 46 of the Sectional Titles Act.