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Secondly , any work from a corporate governance point of view requires three quotations . It is also an obvious error to move ahead with the work where voting on any level has not taken place . According to the Directors , they had made their minds up already .
It was a fait accompli . In respect of being compensated , I think that the Directors should not be compensating anyone for work that each homeowner by law should be undertaking themselves . Dependant on what the provisions of the MOI are , the Directors usually involve the homeowners in the decision around painting the scheme , e . g . paint colour .
They should also have a written policy , pursuant to a meeting with a special resolution around the phased change to aluminium frames . Most of my clients in HOA ’ s who are alive to the gradual modernisation of the schemes , will , within their policy document , set out the exact specification , colour of the frames and even service providers who owners are permitted to use .
The best way forward in this building would be to appoint a mediator to become involved in attempting to mediate the way forward and attempt to assist the Directors in understanding the law . The Community Schemes Ombud Service could be approached for dispute resolution , however , the prayer for relief would have to be carefully crafted to fall within the realms of Section 39 of the Community Schemes Ombud Service Act 9 of 2011 .
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Real Estate Investor Magazine MAY 2024 11