Do we need a signed levy resolution

My Trustees feel that it is unnecessary to have a signed Levy resolution. They want to just discuss and minute it at their Trustee meeting.

In terms of the STSM Act levies are only due and payable once the Trustees have passed a resolution to the effect.

Section 3

  • Liability for contributions levied under any provision of subsection (1), save for special contributions contemplated by subsection (4), accrues from the passing of a resolution to that effect by the trustees of the body corporate, and may be recovered by the body corporate by an application to an ombud from the persons who were owners of units at the time when such resolution was passed: Provided that upon the change of ownership of a unit, the successor in title becomes liable for the pro rata payment of such contributions from the date of change of such ownership.

So yes, technically the Act does not stipulate that the levy resolution have to be a separate written resolution, but what we have found with the courts that work on levy collections that they insist on the separate signed levy resolution as well as the circular that was sent to the owners within 14 days after the AGM.