LEGISLATION
PAGE 35
What if a scheme has legal difficulties or
challenges the collection and payment
of levies in terms of its Memorandum of
Incorporation (MOI)? These questions remain
unanswered.
8. The issue of a scheme’s rights in respect of
passing a third-party cost on to its members
– Every scheme is governed by an MOI
or constitution that can only be changed
via a special resolution of members. What
legal powers does the CSOS have to force
a majority vote to change the governing
documents to include the enforcement of
the CSOS levy?
9. The issue of the CSOS budget – The CSOS
have advised us that their audited financials
will be included in their annual report. This
does not answer the question. The basis on
which their budget was drafted is unknown
and our questions in this regard could not
be answered by the CSOS. Our view is that
revenue determination is being undertaken
without reference to an approved operational
budget – a highly disturbing situation.
10. The issue of sectional title schemes – The
critical question of CSOS levy determination
for units in sectional title complexes within
estates administered by homeowners’
associations remained unanswered despite
having been included in submissions and
raised in meetings with the service and the
department.
We will await the revised regulations and the
outcome of the parliamentary process, after
which further information will be distributed.
Jeff Gilmour
Association of Residential Communities
thesen islands