You may consider appointing
an administrator to halt legal proceedings and negotiate a way out.
The Application to
appoint an Administrator for a fixed period with the purpose of rehabilitating
the scheme, is brought in terms of section 16 of the Sectional Titles Schemes
Management Act.
It is our experience,
particularly where there is a large amount outstanding in municipal debt, the
Council is more at ease negotiating a settlement with a court appointed
Administrator than with Trustees. An Administrator ‘takes the place of the Trustees’
for a period, and as a completely independent third party making all the
decisions affecting the scheme (including harsh steps relating to debt
collection), removes the stress and pressure that you may currently be
experiencing.
An attorney (we can
help) would bring an application to the High Court for the appointment of the administrator.
We would require a copy
of a current levy roll, bank account balance, latest audited financial
statements and a summary from the Trustees of the state of the building in
respect of maintenance and repair requirements. We also need to know the
approximate amounts currently outstanding to creditors and a copy of the most
recent municipal accounts.
Once we have assessed
the situation, we will advise you of the legal costs of bringing the
Application, as well as an indication of the time it will take before the
Administrator is appointed and can begin the rehabilitation process.
