Representation in a Body Corporate
Category Newsletter: Did you know?
As an owner of a unit in a Sectional Title Scheme, who may represent you in engaging with the trustees or managing agent, attend trustee meetings, or annual and special general meetings?
If you own your unit/s in your own personal name, example: Zerlinda van der Merwe, then you, without any form of authority, can represent yourself by engaging with the management of the scheme, attending trustee or any member meeting.
If you co-own your unit, all co-owners must appoint one of their fellow owner's or a third party to represent them. This can be done by a general or specific power of attorney, and at a general meeting of the members, by all co-owners signing the prescribed proxy form. Only one co-owner can vote at a general meeting, and all co-owners must agree on how the vote must be exercised. The body corporate will accept the vote if the co-owner voting is authorised by the aforementioned proxy form.
Should a unit be owned in a trust, a trustee resolution of the trustees of the trust must authorise which one of the trustees will represent the trust, and such a trust can only be represented by the person authorised in terms of the proxy form supported by the trustee resolution, or signed by all the trustees. The beneficiary/ies of the trust do not have automatic right of representation and must also be duly authorised to the alternative of a trustee or other person.
If a company or cc owns a unit, the person representing this juristic entity must be appointed by proxy, supported by a board or member resolution, which can further be accompanied by proof of a CIPC search report. A company can be in the process of deregistration due to non-compliance but it cannot be deregistered, wound up or liquidated.
An administrator, a curator, business rescue practitioner or an executor can also represent an owner/s but must submit proof of their appointment, such as a letter of executorship in the event of an executor or executrix.
A bondholder has a built in power of attorney, and will often attend a sale in execution of a unit as representative of the financial insttitution.
A trustee of the body corporate cannot appoint a proxy to attend a trustee meeting, and a member cannot appoint a proxy to attend a trustee meeting either. However, a trustee, as a non-owner can attend trustee or general meeting in their capacity as a trustee of the body corporate.
Before you decide how you will register your section in a Sectional Title Scheme, consider the role you will play or representation you will require, and when in doubt, consult the Sectional Titles Schemes Management Act.
About the Author
Please click on the following link to learn more about the Author and her company, TVDM Consultants - https://www.tvdmconsultants.com/zerlinda-van-der-merwe.
Author: Zerlinda van der Merwe, TVDM Consultants
