Contingency Fees Act, 1997
R 385.00
Share Blocks Control Act 1980 (Act No. 59 of 1980)8. Capacity and powers of share block company |
| (1) | Notwithstanding anything to the contrary contained in any law— |
| (a) | the capacity of a share block company shall be determined by its main object referred to in section 7 (1) and shall include objects ancillary to that main object; |
| (b) | a share block company shall have only such powers as may be necessary to enable it to realize, subject to the provisions of this Act, its main object and the said ancillary objects; |
| (c) | a share block company shall not have the power, save with the approval by special resolution of a general meeting of the share block company, to alienate or cede, as the case may be, any immovable property of which it is the owner or any of its rights to immovable property of which it is not the owner and in respect of which it operates a share block scheme; |
| (d) | any act of a share block company in excess of its capacity or powers shall be void: Provided that— |
| (i) | in the case of any such void act, the person who performed or is purported to have performed that act on behalf of the company, shall be personally liable to any third party who was prejudiced by reason of the fact that no obligation resulted for the company from that act and who in relation to the performance of that act acted in good faith and reasonably; and |
| (ii) | the provisions of section 248 of the Companies Act shall mutatis mutandis apply in respect of any judicial proceedings or claims arising out of any such act against the person who performed or purported to have performed that act on behalf of the company. |
| (2) | The provisions of this section shall not be so construed that any share block company is prohibited from performing any act or incurring any expenditure to effect the opening in terms of section 5 of the Sectional Titles Act of a sectional title register in relation to any immovable property in respect of which it operates a share block scheme. |
| (3) | A share block company shall not, save in accordance with the provisions of Schedule 1— |
| (a) | apply for the approval of a development scheme; |
| (b) | apply for the opening of a sectional title register in relation to any immovable property in respect of which it operates a share block scheme; |
| (c) | transfer any unit to a member of the share block company. |
