INDUSTRY OVERVIEW
Facing the future - Building resilience in your
ESTATE
2020 / 2021 has seen an acceleration in the rate of change in our lives . These changes have been felt across all sectors of society , and in many aspects of community living . As we settle in to the ‘ new normal ’ this article explores a few current issues , and offers some practical guidance to assist your estate to equip itself to meet future challenges .
ELECTRONIC MEETINGS Lockdown restrictions on gatherings saw many homeowners associations having to cancel or delay meetings and voting on important issues . Those HOAs that had electronic meeting and voting capability found themselves a step ahead . Those that were not had to quickly play catch-up , and put the necessary systems in place , or were forced to wait until restrictions eased up and physical meetings could be lawfully and safely convened . In order to avoid being caught short again it is important to ensure that your estate ’ s HOA is empowered to hold electronic meetings and / or allow for electronic participation in meetings . The first port of call is to examine your association ’ s governing documents to determine whether electronic participation in meetings is permitted or not .
Associations that are set up as non-profit companies in terms of the Companies Act , 2008 ( the Act ) are permitted by the Act to hold meeting by electronic communication , unless prohibited by the entity ’ s memorandum of incorporation ( MOI ). This is subject to the requirement in section 63 ( 2 ) of the Act that ‘ the electronic communication employed ordinarily enables all persons participating in that meeting to communicate concurrently with each other without an intermediary , and to participate reasonably effectively in the meeting ’. If an association ’ s MOI excludes electronic participation in meetings , the MOI should be amended to allow for meetings to be held either entirely electronically , or to allow for electronic participation in meetings going forward .
In voluntary associations that are governed by a constitution , the provisions of the constitution will determine whether electronic participation is permissible or
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