Although it is now clear that at some stage the Sectional Schemes Management Act will become law, right now, members of sectional title schemes can still collect as many proxies as possible for the scheme’s annual general meeting and special general meeting.
Bauer is in favour of the amendment because as it now stands the proxy ruling allows one or two motivated members to dominate decisions on matters about which they feel strongly.
This is according to says Michael Bauer, general manager of the property management company, IHFM, who notes that by doing this they can very often get their own way even though this may not necessarily be the right course for the sectional title scheme as a whole.
Bauer has previously drawn attention to the proposed amendment to section 6 (5) of the Sectional Schemes Management Act, which will limit the number of proxy votes to two per member.
“I thought that the passing of this new ruling was imminent but I have now learned that it is likely to become law only later this year,” he says.
Bauer is in favour of the amendment because as it now stands the proxy ruling allows one or two motivated members to dominate decisions on matters about which they feel strongly.
However, he says it has to be recognised that when the new limitation becomes law, there will be a big increase in the number of general meetings at which the owners may fail to meet the required quorum.
In these cases, he says the Act lays down that the meeting has to be adjourned and reconvened one week later at the same time and same place. If at the next general meeting a quorum is again not achieved, those present have to wait 30 minutes for a quorum before they can proceed and take decisions on behalf of all members, including the many not present.
Bauer says in this situation one or two highly motivated individuals could again take control and the outcome could then be much the same as if they had used their proxy votes.
However, he says if members fail to turn up at AGMs and special meetings, they have only themselves to blame if irregularities go undetected or if decisions are taken which they feel are not in the sectional title scheme’s best interests.
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