Sectional Title Legislation vs Load shedding - Community schemes under pressure from residents.

Load shedding has created a new nightmare for Community schemes throughout the country and luckily technology has presented a better solution than in the past.

In years gone by community schemes that had an area which was not going to inconvenience residents, have had to install generators to counter the impact of load shedding as the concern was for the safety of residents of the scheme as well as the inconvenience of gates not operating or in some cases lifts not being operational.

The running of a generator has become costly in terms of servicing and the cost of diesel/petrol.

The solution is to install an inverter and in some cases an inverter and solar panels.

As in the past the legislation still remains a stumbling block for Trustees as it requires compliance with Prescribed Management Rule 29 of the Sectional Title Schemes Management Act, Act 8 of 2011.

Rule 29 states:

Improvements to common property 29. (1) The body corporate may on the authority of a unanimous resolution make alterations or improvements to the common property that is not reasonably necessary.

(2) The body corporate may propose to make alterations or improvements to the common property that are reasonably necessary; provided that no such proposal may be implemented until all members are given at least 30 days written notice with details of —

(a) the estimated costs associated with the proposed alterations or improvements; (b) details of how the body corporate intends to meet the costs, including details of any special contributions or loans by the body corporate that will be required for this purpose; and (c) a motivation for the proposal including drawings of the proposed alterations or improvements showing their effect and a motivation of the need for them; and if during this notice period any member in writing to the body corporate requests a general meeting to discuss the proposal, the proposal must not be implemented unless it is approved, with or without amendment, by a special resolution adopted at a general meeting.

There is no doubt that the installation of an inverter is a reasonably necessary improvement, therefore Management Rule 29(2) would be the applicable piece of the legislation that the Trustees must consider.

The problem is whether a scheme can wait 30 days to make a decision.

The problem is further complicated by Prescribed Management Rule 15(7) that states:

(7) A general meeting may be called— (a) on 7 days’ notice if the trustees have resolved that short notice is necessary due to the urgency of the matter and set out their reasons for this resolution; provided that the trustees must not take such a resolution in regard to a meeting referred to in rule 29(2) or (4);

Even if the Trustees concluded that this was an urgent matter, they couldn’t call a meeting on short notice as it is specifically excluded under this prescribed management rule.

This begs you to ask the question, is the legislation antiquated or not?

If you consider that not all persons within a scheme will consider the installation of an inverter necessary, then you have to agree that the legislation is not antiquated and is being fair to all owners in that it’s giving every member of the scheme the opportunity to avail themselves of the need for such an improvement.

In conclusion the only solution for Trustees is to comply with the legislation as the consequences of not are far worse than the delay of 30 days.