We find ourselves in uncharted territory with the COVID-19 pandemic, as it has brought pause to large numbers of our society, not only socially, but also from an economic standpoint. In light of this observation we wish to inform members that community schemes are also not immune to these changes and after much consultation we wish to advise that the legislated Annual General Meeting will be postponed until further notice.
Herewith the background on the matter and the regulations/directives that guided us in this decision:
1. Regulation 23 of the Disaster Management Regulations – it appears that all Alert Levels continue this ban on gatherings:
All gatherings are banned, except –
(a) for funerals;
(b) when at a workplace; or
(c) when buying or obtaining goods and services, as allowed in Table 1
2. The CSOS directive reaffirms the regulations:
Meetings (including scheme executives, owners, special, annual) to be held within community schemes may be held telephonically, or by electronic communication platforms that include but is not limited to skype, zoom or other, and votes may be taken via round robin in terms of the Sectional Titles Schemes Management Act or Rules; or, in the case of an HOA, in terms of the Constitution or the Memorandum of Incorporation or the Companies Act. Meetings may not be held in person under any circumstances.
3. The Memorandum of Incorporation (MOI) is the governing document of the Douglasdale Extension 156 Home Owners Association NPC, therefore the above directive from CSOS regarding the option of electronic meetings is not permitted in terms of Article 3.5 of the MOI:
3.5 Electronic participation in Members Meetings not allowed
The Company elected not to allow participation by electronic communication in all or part of a shareholders meeting.
Thus, the Board of Directors has agreed to postpone the Annual General Meeting until such time it is legally allowed and can be held in a safe environment. During this time of uncertainty, we are of the opinion that it is best to err on the side of caution. Lastly we take guidance from the CSOS (Community Scheme Ombud Services) in their latest directive:
The CSOS will not penalise any community scheme for scheduling an annual general meeting after the lockdown period. Community schemes will directly after their AGM submit their annual returns to the CSOS. It will not be necessary for schemes to complete an application for condonation for late filing of their annual returns. Should an AGM be scheduled after the lockdown period, it should be recorded in the minutes.
Should you have any queries or comments on either of the attached documents, please submit them in writing to the General Manager, Jackie de Kock, before Friday, 31 July 2020. Assuming that by this date the Regulation 23 is still in force, which prevents us from setting a date for the Annual General Meeting, we will collate the queries/comments received and provide written responses to all owners by Friday, 21 August 2020.
If you require any further information, feel free to contact the General Manager directly on firstname.lastname@example.org.
Douglasdale Extension 156 Home Owners Association (NPC) – Chairman