SECTIONAL TITLES ACT NO 95 OF 1986
1. Introductory Provisions
2. Development Schemes, Sectional Plans and Sectional Title Registers
3. Registration and Common Property
4. Subdivision, Consolidation and Extension of Sections
5. Extension of Schemes
6. Exclusive Use of Common Property and Servitudes
7. Participation Quotas and Developers
8. Rules and Bodies Corporate
9. Owners, Administrators and Buildings
8. Rules and Bodies Corporate Sections 35 to 43
1. A scheme shall . . . be controlled and managed, subject to the provisions of this Act, by rules.
2. These rules . . . shall comprise (a) Management Rules and (b) Conduct Rules.
3. Rules shall be reasonable and apply equally to all owners.
4. The rules bind owners of sections and persons occupying a section.
5. Amendments to rules must be lodged with the registrar of deeds and only then come into force.
6. The BC shall, on application of an owner or anyone having a real right in or over a unit, or any person authorised by such a person, make the rules available for inspection to such owner, person or authorised person.
36. Bodies Corporate
1. The BC comes into effect the moment someone other than the developer becomes the owner of a unit and every person who thereafter becomes an owner of a unit in that scheme shall be a member of that BC.
4. The BC shall, subject to this Act, be responsible for the enforcement of the rules referred to in section 35, and for the control, administration and management of the common property for the benefit of all owners.
6. The BC shall be capable of suing and being sued in its corporate name.
37. Functions of Bodies Corporate
1. The Functions of BC include:
(a) establishment of a fund to administer the common property
(b) to require owners to make a contribution to such a fund
(e) to open and operate an account or accounts with a banking institution
(f) to insure the buildings
(j) to properly maintain the common property and to keep it in a state of good and serviceable repair.
(l) to comply with any reasonable request for the names and addresses of trustees or owners.
38. Powers of Bodies Corporate
The BC may exercise the powers conferred upon it . . . and such powers include:
(a) to appoint such agents and employees as it may deem fit;
(d) where practicable, to establish and maintain on the common property suitable lawns and gardens and recreational facilities;
(h) to enter into an agreement with any owner or occupier . . . for the provision of amenities or services by the BC . . . including the right to let a portion of the common property . . . by means of a lease.
(j) to do all things reasonably necessary for the enforcement of the rules and for the control, management and administration of the common property.
39. Functions and Powers of bodies corporate to be performed or exercised by Trustees
1. The functions and powers of the BC shall, subject to this Act and the rules and any restrictions imposed or direction given at a general meeting of the owners of sections, be performed and exercised by the trustees of the BC holding office in terms of the rules.
2. For the purposes of an agreement in respect of boundaries of the common property . . . the trustees shall be deemed to be the owner of the land.
40. Fiduciary* position of trustees
1. Each trustee shall stand in a fiduciary relationship to the body corporate.
2. This implies a trustee shall
(a) act honestly and in good faith and in particular
(i) exercise such powers to manage or represent the BC in the interest and for the benefit of the BC and
(ii) not exceed the powers aforesaid and
(b) avoid any material conflict between his or her own interests and those of the BC and in particular
(i) not derive any personal economic benefit to which he is not entitled by reason of his office as trustee . . ., from the BC or from any other person in circumstances in which that benefit is obtained in conflict with the interests of the BC;
(ii) shall notify every other trustee . . . of the nature and extent of any direct or indirect material interest which he may have in any contract of the BC
3. (a) A trustee whose mala fide or grossly negligent act or omission has breached any duty arising from his fiduciary relationship, shall be liable to the BC for
(i) any loss suffered as a result thereof
(ii) any economic benefit derived by the trustee by reason thereof
(b) Where a trustee fails to comply with the provisions of subsection (2) (b) (ii) . . . the contract shall, at the option of the BC, be voidable: provided that ….
(4) Except as regards his duty referred to in subsection (2)(a)(i), any particular conduct of a trustee shall not constitute a breach of duty arising from his fiduciary relationship, if such conduct was preceded or followed by the written approval of all the members of the body corporate where such members were or are cognizant of all the material facts.
41. Proceedings on behalf of bodies corporate
(1) . . . where the BC does not take steps against an owner who does not comply with the rules, the owner may initiate proceedings on behalf of the BC in the manner prescribed in this section:
(2) (a) the owner shall serve written notice to the BC and indicate that if the BC fails to take action within a month, an application to the court under paragraph (b) will be made.
(b) the owner may make application to the Court for an order appointing a curator ad litem for the body corporate for the purposes of instituting and conducting proceedings on behalf of the BC.
42. Powers of curators ad litem
43. Security for costs by applicants for appointment of curators ad litem
End of Part VIII (8)
The full Act can be found at:
Other useful links:
Smith, Tabata, Buchanan, Boyes: Understanding Sectional Title: http://www.stbb.co.za/uploads/STBB086_07_Sectional_Title_web.pdf
Paddocks: Sectional Titles Act and Prescribed Management Rules and Conduct Rules
*Fiduciary Relationship: (noun) Where one person places complete confidence in another in regard to a particular transaction or one's general affairs or business. The relationship is not necessarily formally or legally established as in a declaration of trust, but can be one of moral or personal responsibility, due to the superior knowledge and training of the fiduciary as compared to the one whose affairs the fiduciary is handling. (See: fiduciary, trust).