Once a community scheme has approved a new governance provision, it is often necessary for the scheme executives to take some further action to bring that provision into operation or make it binding on all owners and occupiers.
If they are not in favour of the provision and use their position to frustrate its implementation, an affected person can bring an application to the CSOS to get them to do their duty.
In terms of section 39 (3) (a) of the CSOS Act, an application may be for:
“an order requiring the association to record a new scheme governance provision consistent with a provision approved by the association”
Examples of issues
A sectional title body corporate takes a resolution making a new rule, but the trustees, who individually opposed the motion, fail to give notification and lodge the rule with the CSOS, which is necessary to make it effective.
A special resolution changing the memorandum of incorporation of a home owners association must be lodged with the Commission for Intellectual Property and Companies.
If in any community scheme there is an unreasonable delay between the scheme’s approval of a new governance provision and the scheme executives arranging for the process necessary to make that provision binding on all owners and occupiers, any affected party can make application to the CSOS for relief.
Example of order
An example of the type of order the CSOS could give is:
That the trustees of the Body Corporate of the Shady Grove Scheme must within seven days of this order sign a notification to the Community Schemes Ombud Service in prescribed form advising that the body corporate by special resolution on 1 May 2017 made a conduct rule in the terms set out in Annexure A.
This order takes effect immediately.
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