Facts about the first general meeting of a body corporate
Everything you need to know (including essentials which you might not even know you needed to know)
05 March 2026 | Zerlinda van der Merwe
So, you've done it! You've signed the offer to purchase, survived the bond application process, and collected your keys, a bottle of champagne and/or a fruit basket from the developer's representative. Your sectional title dream has officially become a reality. Congratulations! But while you were busy planning your housewarming and where the furniture will go in your new home, something else was quietly happening in the background: a body corporate came into existence.
From the moment the first unit in a sectional title scheme is transferred, a body corporate is automatically established in terms of South African law. It exists, but is in desperate need of structure, care, and capable leadership. That's where the first general meeting comes in.
What is the first general meeting, and why does it matter?
The first general meeting of a body corporate is exactly what it sounds like: the very first formal gathering of the members of the body corporate. It's where the scheme gets organised, owners meet each other (sometimes for the first time), trustees are elected, budgets are confirmed, and contracts are scrutinised and ceded to the body corporate.
Think of it as the body corporate's inauguration day. The tone set here echoes through the entire life of the scheme.
When must it be held?
In terms of Prescribed Management Rule (“PMR”) 16 of Annexure 1 of the Regulations to the Sectional Title Schemes Management Act 8 of 2011 ("STSMA"), the first general meeting must be held within 60 days of the establishment of the body corporate. Owners must receive at least 14 days' written notice before the meeting.
Who is responsible for calling it?
Here's something many new owners don't realise: it's the developer's job, not the owners', to call the first general meeting. Section 2(8) of the STSMA places this obligation squarely on the developer's shoulders. Along with the notice, the developer must provide the agenda, all required supporting documents, and a comprehensive summary of the body corporate's rights and obligations under existing policies and contracts.
This means that the developer doesn't get to hand over the keys and disappear into the sunset. They have real obligations to fulfill first.
What must be on the agenda?
PMR 16(2) sets out the minimum agenda items. This isn't a suggestion list, these matters must be dealt with:
Insurance: A motion to confirm or vary the insurance policies effected by the developer. Is the building properly insured? For the right replacement value? These are not questions to gloss over.
Budget: A motion to confirm or vary the estimated income and expenditure for the scheme's first financial year. The budget is the lifeblood of the scheme, it determines what levies are, and whether the scheme can actually function.
Financial Statements: A motion to approve the developer's financial statements, covering both the period from first occupation to establishment of the body corporate, and from establishment. Yes, there are 2 sets. Yes, both matter.
Ratification of contracts: A motion to ratify (or not ratify) contracts entered into by the developer on behalf of the body corporate, subject to section 15(2) of the STSMA. This is 1 of the most important agenda items, more on this shortly.
Documents and residue: A motion confirming that the developer has furnished the body corporate with all required documents and paid over any money that should be in the body corporate's hands.
Appointment of an auditor: Because financial accountability starts on day 1.
Election of trustees: The number of trustees is determined, and then the election happens. More on this below, it's the exciting part.
Directions to incoming trustees: A motion dealing with any restrictions or directions to trustees in terms of section 7(1) of the STSMA, or confirming that there are none.
What documents must the developer hand over?
PMR 16(4) requires the developer to furnish the body corporate with a full set of essential documents, including:
All approved building plans;
Any encroachment permits;
Plans showing the location of pipes, wires, cables, and ducts (because someone will always need to find the water shut-off in an emergency);
Names and addresses of all contractors and subcontractors;
All warranties, manuals, operating instructions, and service guides for equipment;
All records the body corporate is required to retain in terms of PMR 27, and
These documents are not optional extras. They are the body corporate's operational toolkit, and the scheme cannot be properly managed without them.
The developer's vote is suspended (and this is a big deal)
Here's a protection that new owners absolutely need to know about: when the meeting votes on the financial statements, the ratification of contracts, and the confirmation of documents and residue, the developer's vote is suspended in terms of PMR 16(3).
Why? Because without this protection, a developer could theoretically vote to approve their own (potentially dodgy) financial statements, rubber-stamp contracts that benefit them at owners' expense, and confirm that all documents have been provided when they haven't. It would be like letting the chef mark their own food hygiene inspection. The suspension of the developer's vote ensures that these critical decisions rest with the owners, the people who actually have to live with the consequences.
What If the developer doesn't provide the documents?
It happens. Sometimes documents go missing. Sometimes they were never properly compiled. PMR 16(5) deals with this: if the developer fails to furnish required documents, the body corporate must take all reasonable steps to obtain or have the documents prepared, and may recover those costs from the developer.
So developers, take note: it's cheaper and far less stressful to simply hand over the documents. Everyone will be happier.
The trustee election (where things get interesting)
If you've ever been to a first general meeting, you'll know that the trustee election is the moment when quiet, polite neighbours suddenly become surprisingly opinionated. And honestly? Good. This is your investment, and you should care who manages it.
The meeting determines the number of trustees (a minimum of 2 is required), and then owners nominate and elect. Take this seriously: trustees are the people who will oversee the scheme's finances, enforce the rules, and make decisions that affect your daily life and the value of your property. Choose people who are willing, available, capable, and (this is important) reasonable. 1 difficult trustee can make an otherwise functional committee miserable for everyone.
If you're considering standing as a trustee, we say go for it. It's rewarding, it's important, and it makes a real difference.
What about contracts the developer signed?
This deserves a moment of attention. Section 15(2) of the STSMA means that the body corporate's ability to cancel or walk away from contracts entered into by the developer is not unlimited. Owners can vote not to ratify a contract, but the legal position around cancellation is nuanced and may carry consequences. Managing agent agreements are one of the most common points of contention at first meetings.
If there are contracts on the table that concern you, get advice before the meeting, not after.
Practical tips for new owners and trustees
Read the notice and agenda before you arrive. Showing up unprepared helps no one.
Ask questions about the budget. Is it realistic? Does it include a maintenance reserve?
Scrutinise the insurance. Is the replacement value adequate? When was it last assessed?
Don't skim the financial statements. Where did the money go? Does it add up?
Think carefully about who you vote for as trustee. Popularity is not the same as competence.
If something feels wrong, it probably is. Trust your instincts, and get professional advice.
A well-run first meeting sets the tone for everything that follows
Common problems we see include developers who drag their feet on calling the meeting, financial statements that are incomplete or unclear, contracts that weren't disclosed upfront, and insurance that's dangerously inadequate. None of these are unfixable, but they're all much harder to deal with once the meeting has come and gone without proper scrutiny.
The first general meeting is your opportunity to ask hard questions, make good decisions, and lay the groundwork for a well-governed scheme. Don't let it become a formality that everyone rushes through to get to the refreshments.
Final thoughts | A defining moment for your scheme’s future
The first general meeting might not be anyone's idea of a glamorous afternoon, but it is genuinely one of the most important events in a scheme's life. Get it right, and you're building something worth living in. Get it wrong, and you may spend years untangling the mess.
At TVDM Consultants, we assist bodies corporate, trustees, managing agents, and property professionals to navigate exactly these kinds of milestones, with clarity, expertise, and the occasional well-timed reality check. If you're heading into a first general meeting and want guidance, or if you suspect your scheme's first meeting wasn't everything it should have been, we'd love to hear from you. For more information please reach out to info@tvdmconsultants.com.
Because in sectional title, the beginning really does matter.
About the Author:
Zerlinda van der Merwe is a Co-Founder | Director at TVDM Consultants.