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


Sectional Titles Schemes Management Regulations, 2016


Annexure 1 : Management rules

Part 4 : Owner Meetings

16. First general meeting


(1) The developer must include with the notice of the first general meeting held in terms of section 2(8) of the Act—
(a) an agenda in accordance with sub-rule (2);
(b) the documents referred to in sub-rule (2); and
(c) a comprehensive summary of the rights and obligations of the body corporate under the policies and contracts referred to in sub-rule (2)(d).


(2) The agenda for the first general meeting of members must include at least the following—
(a) a motion to confirm or vary the terms of the policies of insurance effected by the developer or the body corporate;
(b) a motion to confirm or vary an itemised estimate of the body corporate's anticipated income and expenses for its first financial year;
(c) a motion to approve, with or without amendment, the developer's—
(i) evidence of revenue and expenditure concerning the management of the scheme from the date of the first occupation of any unit until the date of the establishment of the body corporate, as required in terms of section 2(8)(c)(iii) of the Act; and
(ii) financial statements relating to the management and administration of the scheme from the date of establishment of the body corporate to the date of notice of the first general meeting referred to in subrule (1);
(d) subject to section 15(2) of the Act, a motion to ratify or not to ratify the terms of any contract entered into by the developer on behalf of the body corporate;
(e) a motion confirming that the developer has—
(i) furnished the meeting with copies of the documents referred to in section 2(8) of the Act and in this rule; and
(ii) paid over any residue referred to in section 2(9) of the Act;
(f) a motion appointing an auditor to audit the evidence and financial statements referred to in sub-rule (2)(c);
(g) motions determining the number of trustees and electing trustees;
(h) a motion detailing any restrictions to be imposed or directions to be given in terms of section 7(1) of the Act or confirming that there are no such restrictions or directions.


(3) For the purposes of voting on the items of business referred to in sub-rule (2)(c), (d) and (e), any vote held or controlled by the developer is suspended.


(4) In addition to the documents referred to in section 2(8) of the Act, the developer must at or before the first general meeting furnish the body corporate with copies of—
(a) all building plans approved by the local municipality;
(b) any encroachment permit or other document issued by the local municipality in regard to the improvements in the scheme;
(c) plans showing the location of all pipes, wires, cables and ducts referred to in section (3)(1)(r) of the Act;
(d) names and addresses of all contractors, subcontractors and any other persons whom the developer has employed to render services or supply materials relating to the development of the scheme;
(e) all warranties, manuals, schematic drawings, operating instructions, service guides, documentation from manufacturers and other similar information in respect of the construction, installation, operation, maintenance, repair and servicing of any common property or body corporate assets, occupation certificate, including any guarantee or warranty provided to the developer by a person referred to in sub-rule (4) (d); and
(f) all records the body corporate is required to prepare or retain in terms of rule 27.


(5) If the developer fails to provide the body corporate with any document referred to in section 2(8) of the Act or in this rule, the body corporate must do all things reasonably necessary to obtain or have the specific document prepared and may recover the reasonable costs incurred in doing so from the developer.


(6) If the developer fails to call the first general meeting in compliance with the requirements of section 2(8) of the Act, any member or the body corporate may do so and the body corporate must recover from the developer all costs reasonably incurred in ensuring compliance with the developer's obligations.