• Notifying all shareholders of a meeting to vote on the proposed conversion . This notice must contain details of the proposed sectional title scheme , including the plans , and an explanation that the new scheme would have a set of management and conduct rules as stipulated in sectional title legislation ;
• Dealing with any objections to the proposal , which must be lodged in writing within one month of the meeting notification being sent out ;
• Obtaining approval for the change from the local authority if the shareholders vote in favour ;
• Notifying the CIPC that the shareblock company is being converted to a sectional title scheme ;
• Drawing up budgets including the levy schedules for the proposed sectional title scheme ; and
• Registering the sectional title plan at the Deeds Office and obtaining a certificate of establishment .
Alternatively , if a sectional title register has already been registered for the shareblock scheme , individual shareholders can opt to sell their shares and convert them to sectional title .
It should be noted , though , that directors may not force any shareholder to convert to sectional title , and also may not advise any shareholder that if they sell their shares , the new owner will have to convert to sectional title .
Andrew Schaefer Managing Director Trafalgar
SA Real Estate Investor Magazine NOV 2022 89