by Phil » 25 Oct 2020, 13:48
Rog, locally we are governed, sectional title, by a number of Acts. We are a Company with elected directors from the members/shareholders.
1. We are an NPC (non profit company) = Companies Act which ensures fiduciary duties by the Board
2. STSMA - Sectional Title Schemes Management Act = how you run the business and accountability to the members/shareholders
3. CSOS - Community Services Ombud Service = again how you run the business, also requirements for Reserve Funds. Also they act when there is a dispute between the Owner and the Board. They also handle debtors outstanding accounts, their ruling is equivalent to that of a Magistrates court order.
4. Reserve Fund = we must have 25% of the Administrative Levies in the reserve. This is for unforeseen major maintenance (not in budget)
5. Then to add more to the pie, we also have an MOI (Memorandum of Incorporation)
The annual budget is compiled and presented to the Board for approval and then I submit it to the Owners at the AGM for approval. As well as the Annual Financial Statements.
What regulations/Acts do you have in place to protect the owners (Old Age, Retirement)?
Phil