Financial year, functions and powers
21. (1) The financial year of a body corporate established after the Act comes into operation must run from the first day of October of each year to the last day of September of the following year unless otherwise resolved by the body corporate in general meeting.
(2) The body corporate must not—

(a) make loans from body corporate funds without the authority of a unanimous
resolution;
(b) refund to any member a contribution lawfully levied and paid;
(c) distribute to a member or any other person any portion of the body corporate’s profits or gains except—
(i) upon destruction or deemed destruction of the buildings, or
(ii) where such profit or gain is of a capital nature.

(3) The body corporate may, on the authority of a written trustee resolution—

(a) levy members with a special contribution if additional income is required to
meet a necessary expense that cannot reasonably be delayed until provided
for in the budget for the next financial year;
(b) increase the contributions due by the members by a maximum of 10 per cent
at the end of a financial year to take account of the anticipated increased
liabilities of the body corporate, which increase will remain effective until
members receive notice of the contributions due by them for the next
financial year; provided that the trustees must give members notice of such
increased contributions by notice in terms of rule 25, with such changes as
are required by the context;
(c) charge interest on any overdue amount payable by an member to the body
corporate; provided that the interest rate must not exceed the maximum rate
of interest payable per annum under the Prescribed Rate of Interest Act,
1975 (No. 55 of 1975), compounded monthly in arrear;
(d) invest any moneys in the reserve fund referred to in sections 3(1)(b) of the
Act in a secure investment with any institution referred to in the definition of
“financial institution” in section 1 of the Financial Services Board Act, 1990
(Act No. 97 of 1990);
(e) enter into written and signed contracts in respect of its powers and duties
under the Act and these rules;
(f) join organisations and subscribe to services to further its purposes under the
Act and these rules;
(g) delegate to one or more of the trustees, to a member, agent or an employee
such of their powers and duties as they deem fit, and at any time to revoke
such delegation; provided that when they delegate any power or duty they
must specify in writing—

(i) the power or duty concerned;
(ii) a maximum amount of the body corporate’s funds that may be spent
for a particular purpose; and
(iii) any conditions that may be applicable; and

(h) approach the Community Scheme Ombud Service for relief.

(4) The body corporate must ensure that all money received by
the body corporate is deposited to the credit of an interest-bearing bank account—

(a) in the name of the body corporate; or
(b) that is a trust account opened in terms of either the Estate Agency Affairs
Act, 1976 (Act No. 112 of 1976), or the Attorneys Act, 1979 (Act No. 53 of
1979).

 

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