Owners should attend sectional title AGMs to gain a semblance of control of the financial situation and better knowledge of the complex’s operations, says Michael Bauer, general manager of IHFM property management company.

“Sectional title owners need to realise that if they don’t attend the AGM of their scheme, they shouldn’t complain if they don’t agree with the decisions that have been made. It’s also important to check that all the trustees are doing their jobs properly – you can’t assume that things are always done when and how they should be done.

“A sectional title complex is a business in which millions of rands in assets are managed and it must be treated with the same seriousness you would treat any business of that scale.

“It’s important to attend the AGM because it gives owners an idea of the personalities of the group involved in managing the body corporate. By attending the meeting you will get an idea of the way the building is run and the decisions that need to be made, as well as participate. Group dynamics (for instance whether there are minorities lobbying constantly for their own interests) will be shown up at meetings like this, and owners can vote against decisions they believe are not in the interests of the scheme.”

He says trustees must have a budget meeting before the AGM is due to take place and the new levies should actually be implemented at the beginning of the new financial year, according to Prescribed Management Rule 36 (2).

“In the past, levy budgets used to be discussed at the AGM but this system was not effective as decisions on the financial situation of the complex would be delayed by a few months while waiting for the AGM to take place. The only requirement now is that the increase be ratified at the AGM, once the levy budget has been agreed on for the year by the trustees and a letter has been sent out to all the owners,” says Bauer.

“Last, the income of the scheme will be discussed at the AGM and it is important that the owners know and vote on what will happen with funds over the next financial year, for instance, whether any large projects will be carried out. If you are not at this meeting, you cannot say after the fact that you didn’t want a new gate or the exterior walls painted.”

Michael Bauer is a regular contributor to www.sectionaltitlesa.co.za. Visit www.ihfm.co.za, call on 083 255 4442, or email michael@ihfm.co.za.