Virtual Reality | Part 2

26 June 2020 | Zerlinda van der Merwe

In the first article in this series, I introduced my thoughts on virtual meetings in the workplace as well as in community schemes. In this article, I'll be taking a look at some practical suggestions to accommodate remote attendance at general meetings in community schemes.

If you are a trustee or managing agent of a sectional title scheme, remember that you have 4 options during this National Lockdown period.

Firstly, you can hold an annual general meeting or special general meeting by means of a method which is accessible to all the members of the scheme, such as by telephone, Skype, Zoom, Microsoft Teams, and the list goes on. The medium or platform chosen must allow all attendees to participate in the business of the meeting, and at the start of the meeting, with the assistance of the managing agent, if there is one, the chairperson must be able to identify each participant, with reasonable certainty.

Secondly, all members of a body corporate can agree, in writing, to waive their right to hold an annual general meeting, provided that this waiver is done no later than 1 month before the financial year end, and all members will further need to agree to the business of the meeting as per the prescribed agenda requirements.

The third option is to postpone the annual general meeting, even it is delayed past the deadline of 4 months of the financial year end, as the Community Schemes Ombud Service have published a Directive noting that no penalty will be imposed on a scheme during this time.

The fourth option is to hold the meeting by means of a round robin process (in writing), which will require all owners to agree in the case of the passing of ordinary and unanimous resolutions, and 75% of all members if a special resolution is tabled for approval.

If you are a trustee or managing agent of a Common Law Homeowners’ association, you must review and adhere to the constitution of the homeowners’ association, which may or may not allow for remote meeting attendance and/or electronic voting, and if you are a Director of an Homeowners’ Association Non-Profit Company, the Companies Act does, and your memorandum of incorporation will allow both.

It is important to remember that the notice requirements must still be met with options 1 and 4, and quorum must be reached and maintained when exercising option 1.

In the next article, I'll be taking a look at electronic voting. Please feel free to share your thoughts with me, and if you require legal advice and assistance with this topic, please do contact me at zerlinda@tvdmconsultants.com or 082 402 4954 and remember, during the month of June, we're offering a free 30 minute Zoom consultation.

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Virtual Reality | Part 3

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Virtual Reality | Part 1