Hylton Hiralal v Pine Lake Grove Body Corporate and The Trustees of Pine Lake Grove Body Corporate

The applicant, Hylton Hiralal, is the owner of unit 17 in the Pine Lake Grove sectional title scheme in Lonehill, Sandton, Gauteng. The first respondent is the Pine Lake Grove Body Corporate and the second respondent is the trustees of the body corporate, assisted by Angor Property Specialists as managing agent. The dispute was brought under section 38 of the Community Schemes Ombud Service Act 9 of 2011 (CSOS Act), with the applicant seeking relief under section 39(4)(a) requiring the association to call a general meeting. It was common cause that the scheme had not held an annual general meeting (AGM) since April 2021. The respondent acknowledged the delay and explained that there had been problems with the audit following a change in managing agents in April 2022. The respondent indicated that an AGM had been scheduled for 7 December 2023, although the notice, agenda, and attachments still had to be circulated. A certificate of non-resolution was issued on 10 August 2023 after conciliation failed, and the matter proceeded to adjudication on the papers.

• Whether the body corporate had failed to comply with its statutory duty to hold an AGM within the time required by Prescribed Management Regulation 17 under the Sectional Titles Schemes Management Act 8 of 2011.
• Whether the applicant was entitled to an order under section 39(4)(a) of the CSOS Act compelling the convening of a general meeting.
• Whether any evidence existed to show that members had validly waived the requirement to hold an AGM.

The application was granted. The second respondent was ordered, in terms of section 39(4)(a) read with section 54(3) of the CSOS Act, to convene an annual general meeting in accordance with PMR 17(6), (7) and (8) on or before 7 December 2023. No order as to costs was made.

A body corporate in a sectional title scheme is required by PMR 17 to hold an AGM within four months after the end of its financial year unless there is a valid written waiver by all members and written consent to the requisite motions. Where no AGM has been held and no valid waiver is proved, an owner materially affected by that failure is entitled to relief under section 39(4)(a) of the CSOS Act compelling the association or trustees to convene the meeting.

The adjudicator observed, in the context of costs, that parties in section 54 CSOS adjudications are generally expected to bear their own costs, and that adverse cost orders are more commonly associated with dismissals under section 53 for frivolous, vexatious, misconceived, or non-compliant applications. These remarks were ancillary to the main decision.

This decision reinforces the statutory obligation of sectional title bodies corporate to hold annual general meetings timeously in compliance with PMR 17 of the Sectional Titles Schemes Management Act. It also illustrates the remedial role of the CSOS under section 39(4)(a) in compelling governance compliance within community schemes where trustees or managing agents fail to convene mandatory meetings. The matter is practically important for owners seeking enforcement of procedural and governance duties in sectional title schemes.