Quorums in General Meeting – Home Owner Associations

BY Bellbuoy

In common law home owner associations a quorum is detailed in the constitution, which should also detail the varying levels of quorum required for different types of decisions or resolutions. The constitution is the common law home owner association’s fundamental form of governing document, as they have no governing statute, and the professional drafting of the various clauses is important for efficient governance.

However, in a home owner association that is a non-profit company (NPC) the quorum is detailed in the Companies Act 71 of 2008 (as amended) or the Memorandum of Incorporation (MOI). Section 64 of the Companies Act requires a 25% quorum and where there are more than two shareholders, there must be at least three shareholders present. The Act does distinguish between a quorum to begin a meeting and a quorum to debate different resolution types, however in either case the MOI can amend this by increasing or lowering the requirement. If a quorum is not attained within one hour, the meeting is set for a week later. The presiding officer may extend the one hour period in exceptional circumstances and the MOI may change the period of one week.

S Moore-Barnes
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 February 05, 2022
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