Acts Online
GT Shield

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

Schedule 1 - (Section 8 (3))

7. Establishment of body corporate in relation to property


As from the establishment of the body corporate contemplated in section 28 of the Sectional Titles Act in relation to property in respect of which a company operates a share block scheme, and notwithstanding anything to the contrary contained in any law—

(a) a person to whom a unit comprised in that property has been transferred shall no longer have any rights against or liabilities to the company in relation to that unit arising out of the memorandum or articles of the company or any agreement or arrangement referred to in paragraph ( f ) (iii);
(b) the rights and liabilities of any member of the company in relation to the company shall remain unaltered until such time as such a unit is transferred to that member;
(c) there shall be included in the liabilities of the body corporate any liability of the company for the expenses contemplated in section 30 (1) (a) of that Act which was incurred by the company but not discharged by it before the establishment of the body corporate;
(d) the company shall be liable to the body corporate to make the contributions contemplated in section 24 (2) (c) of that Act in respect of any such unit which has not been transferred by the company to any of its members, and such contributions shall be defrayed out of the levy fund established under section 13 of this Act;
(e) the body corporate shall reimburse the company out of the fund referred to in section 30 (1) (a) of that Act for the expenses which the company actually incurs in respect of—
(i) any fees or duties payable under the Companies Act;
(ii) the audit and secretarial fees payable in connection with the main business of the company;
(iii) its winding-up; and
(iv) any matter agreed upon between the company and the corporate body;
(f) the rules contemplated in section 27 of that Act in force from time to time in respect of the property controlled and managed by the body corporate shall, in the case of conflict with the provisions of—
(i) the memorandum or articles of the company; or
(ii) any use agreement; or
(iii) any agreement or arrangement in force between the company and any of its members or any other person entitled, by reason of the acquisition of any share of the company or any right thereto, to the use of any portion of a building comprised in the development scheme which applies in respect of the said property, prevail and shall be deemed to be incorporated in the said memorandum or articles or such agreement or arrangement, as the case may be.