A reader, who resides in a sectional title complex comprising 30 units of equal size, wants to know how the ownership of multiple units affects the calling of special general meetings.
She says she understands that a 25 per cent participation quota is required to call a special general meeting which, in their case, would be at least eight units.
However, she says three of the units are owned by the same person and argues this means there are only six people wishing to call the meeting.
See the reader’s question here.
The participation quota of an owner of a section is, in simple terms, a representation of the value of that owner’s section in relation to the value of all the other sections.
So, where a vote based on value is required, such a figure is used to determine the voting rights of the owners concerned.
Where a vote is determined in accordance with number, each owner of a section has a single vote unencumbered by the value thereof.
The Sectional Titles Schemes Management Act says trustees are obliged to call a special general meeting when members entitled to 25 per cent of the total quotas of all sections deliver a written and signed request to the body corporate.
Special general meetings are required in respect of certain specified issues and also for urgent matters.
A special resolution, as an alternative to members voting at a formally called meeting, may be passed by a threshold vote of 75 per cent of the body corporate and where such vote is merely executed in a written manner.
In the event of an attendance style meeting, the 75 per cent is calculated based on the number of members present.
In both instances, the calculation is based on both number, where each member is entitled to a single vote, and value based on the participation quota.
The act does make provision for votes being calculated in number only.
It has however been submitted by authors on the topic that votes in respect of a special general meeting should always be calculated based on number and value, not number alone.
The reader should be aware that the mere calling of a special general meeting where the request is signed by the appropriate number of members does not result in the subject matter in the notice being approved.
This is merely the requirement for the calling of a meeting at which votes will still be cast. The passing of the resolutions concerned remain open to a proper vote in either of the manners discussed above.
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