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Citation Information

Type Working Paper
Title The Readiness of Bodies Corporate in South Africa for Third Generation Sectional Title Legislation: An Accountancy Perspective
Author(s)
URL http://www.waset.org/pdf/books/?id=62023
Abstract
After being in effect since the late 1970s, first
generation sectional title legislation in South Africa was completely
overhauled in recent years into what is now commonly referred to as
third generation sectional title legislation. The original Sectional
Titles Act was split into three separate statutes, namely the Sectional
Titles Schemes Management Act No. 8 of 2011, the Sectional Titles
Amendment Act No. 33 of 2013 and the Community Schemes
Ombud Service Act No. 9 of 2011, with various Regulations detailing
how the different acts should be applied in practice. Even though
some of the changes effected by the new legislation is simply
technical adjustments and replications of the original first generation
legislation, the new acts introduce a number of significant changes
that will have an effect on accountancy and financial management
aspects of sectional title schemes in future. No academic research has
been undertaken on third generation sectional title legislation in
South Africa from an accountancy and financial management
perspective as yet. The aim of this paper is threefold: Firstly, to
discuss the findings of a literature review on the new third generation
sectional title legislation, with specific reference to accountancyrelated
aspects. Secondly, the empirical findings of accountancyrelated
aspects from the results of a quantitative study on a sample of
bodies corporate will be discussed. The sample of bodies corporate
was selected from four different municipal areas in South Africa.
Specific reference will be made to the readiness of bodies corporate
regarding the provisions of the new legislation. Thirdly, practical
recommendations will be made on how bodies corporate can prepare
for the new legislative aspects, and further research opportunities in
this regard will be discussed.

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