“We have on occasion,” said Bauer, “come across sectional title schemes which have operated for five to ten years without holding a single annual general meeting or having an audit done by an independent auditor.”

Quite often, says Bauer, the developers and current owners of sections in the sectional scheme have simply been unaware of the provisions of the Sectional Title Act – they had no idea they were supposed to elect trustees and hold AGMs.  They also did not know that they were supposed to have conduct rules.

In industrial schemes big changes often become essential because major changes in operations are undertaken:  a paint manufacturer might be replaced by a food distributor or a panel beater – and this may call for expensive new installations (which in turn might necessitate a rent “holiday”).  Security, always a prime concern, may have to be drastically increased.

Repeating a theme he has harped on time and again, Bauer said that the managing agent has the power to make or break such a scheme.

“A good agent,” he said, “will run a tight ship in which levy defaults are below 6 or 7%, maintenance is on-going and always up to date and the security has no loopholes or weak points – but it is staggering that there are schemes which still run unregulated, without reference to law and with no agents or trustees.”