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Fines to enforce rules illegal?

By Solmor Mansions on Fri, 09 Mar 2012 at 06:51

Hi

We have a schedule of fines in our Conduct Rules approved at a SGM, filed at Deeds Office and a reasonable procedure is followed to give owners a chance to "give their side" before trustees decide if a fine is applied or not.

Our managing agent received an opinion from an attorney who made the following points:
1. Fines affect the proprietary rights of all the owners, and as such Section (1)(3)(c) applies and we may not fine any owner unless they agree to be fined.
2. By imposing fines, Bodies Corporate are acting ultra vires as they have no authority to impose fines for non-compliance with the Rules.
3. Section 38(j) of The Act "do all things reasonably necessary for the enforcement of the rules", and Management Rule 28(3), "Trustees shall do all things reasonably possible for the enforcement of the rules in force" do not give BCs the right to impose financial penalties.
4. BCs cannot use The Penalties Act to fine owners.

What are your views on the above points please?

Kind regards

Replies

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RE: Fines to enforce rules illegal?

Peter Vickery replied on Fri, 09 Mar 2012 at 07:36

We amended our rules to allow for fines some years ago and were assisted in the process by a well respected attorney.
How else does one get compliance with the rules when the most effective lever is taken away??

Regards...Show More

RE: Fines to enforce rules illegal?

Clive Owens replied on Fri, 09 Mar 2012 at 08:20

Follow

RE: Fines to enforce rules illegal?

Carel Basson replied on Fri, 09 Mar 2012 at 10:36

Follow

RE: Fines to enforce rules illegal?

Gerhard Bezuidenhout replied on Fri, 09 Mar 2012 at 10:57

The above mentioned opinion has a major impact. Maybe one should acknowledge that "Penalty/Fine" is an unfortunate term which crept in over time.
How about "administrative levy"? Whatever.

It has been established on this forum and guided by G Paddock that the imposition of a penalty is in order, should both procedures and the relevant amount be written into the conduct rules....Show More

RE: Fines to enforce rules illegal?

Mike Power replied on Fri, 09 Mar 2012 at 13:50

Hi All, I have also been made aware of an opinion from a well known S/T attorney company which goes along with the feeling that fines and penalties are not enforceable. There was an article in their recent newsletter. Try and do some googling.

RE: Fines to enforce rules illegal?

Peter Vickery replied on Sun, 11 Mar 2012 at 17:41

Hi all - click on this link for another view!
http://www.ghostdigest.co.za/articles/enforcement-of-sectional-title-rules/52071

Regards...Show More

RE: Fines to enforce rules illegal?

Peter Vickery replied on Sun, 11 Mar 2012 at 18:12

Hi All - for yet another view click on this link!
http://www.conveyancing24.co.za/index.php?option=com_content&view=article&id=60:sectional-title-conduct-rules&catid=35:sectional-title

Regards...Show More

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