Sectional owners holding at least a quarter of the participation quotas in the scheme can apply to the CSOS for an adjudicator’s order authorising and requiring that appointment.
In terms of prescribed management rule 28(2) under the Sectional Titles Schemes Management Act, 2011:
“Members entitled to 25 per cent of the total quotas of all sections may apply to the Community Scheme Ombud Service for the appointment of an executive managing agent”
If a substantial number of sectional owners have good reason to believe that the scheme should be managed by an executive managing agent (EMA), rather than by volunteer trustees or by a conventional managing agent, but cannot get sufficient support to take the special resolution required to make that appointment, they can apply to the CSOS for an order making such an appointment.
This application may also be made at the same time as the application for confirmation that the body corporate has the right to cancel its existing managing agency agreement.
The reasons put forward for the appointment may be varied, but they should show, by way of specific examples, how and why the current management arrangements are not working and indicate that they expect that these issues will be addressed by the appointment of an executive managing agent.
The application should be accompanied by a proposed contract and the agreement of a person who is prepared to accept appointment as the EMA.
An example of the type of order the CSOS could give is:
That Jonas Savuka is appointed as the executive managing agent of the Happy Days Sectional Title Scheme in terms of the contract attached to this order marked “A”.
This order takes effect immediately.
If you would like to see the whole of the Community Schemes Ombud Service Act, 9 of 2011, including the full text of chapter 3 that covers applications, you can access this from Paddocks’ resource library.
Do you have concerns about your matter, need assistance completing your application, or want a sectional title Consultant to review your application before submission? Have a look at the Paddocks’ Consulting page.
For general help on the CSOS, including the special meanings of the words and phrases “association”, “common area”, “dispute”, “executive committee”, “owner”, and “scheme governance documentation” see the CSOS Information page.
Needing other assistance? Have a look at our Paddocks assistance page, which includes the helpful application guide explanation, for more information.
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