Acts Online
GT Shield

Share Blocks Control Act 1980 (Act No. 59 of 1980)

13. Establishment of levy fund by share block company


(1) A share block company shall in respect of the share block scheme it operates establish and maintain a levy fund sufficient, in the opinion of its directors, for the repair, upkeep, control, management and administration of the company and of the immovable property in respect of which it operates the share block scheme, for the payment of rates and taxes and other local authority charges on the said immovable property, any charges for the supply of electric current, gas, water, fuel and sanitary and any other services to the said immovable property, and services required by the company, for the covering of any losses suffered by the company, for the payment of any premiums of insurance and of all expenses incurred or to be incurred to effect the opening under section 5 of the Sectional Titles Act of a sectional title register in relation to the said immovable property, and for the discharge of any other obligation of the company.


(2) Save as otherwise provided in the memorandum or articles of a share block company or in any agreement or arrangement between the company and its members, every member of the company shall contribute monthly to the levy fund in the proportion of the number of his shares to the total number of issued shares of the company or, if the company does not have a share capital, all its members shall so contribute equally.


(3) All contributions received in terms of subsection (2) shall forthwith—
(a) be deposited in a separate account which the company shall open and keep with a bank or building society; or
(b) be entrusted to a practitioner or to an estate agent, in his capacity as such.


(4) The moneys in the levy fund shall be utilised to defray the expenses referred to in subsection (1).


(5) The directors of the share block company shall ensure that such accounting records as are necessary fairly to reflect and explain the state of affairs in respect of the moneys received and expended by or on behalf of the company in respect of the share block scheme operated by the company, are kept in one of the official languages.