Co-operatives Act, 2005 (Act No. 14 of 2005)SchedulesSchedule 1 : Special Provisions Relating to Certain Kinds of Co-operativesPart 1 : Housing Co-operatives5. Termination of membership |
| (1) | Despite any other provisions of this Act, the membership of a member of a primary housing co-operative may be terminated without a special resolution of the members, if a member is in arrears with payments due in terms of a use agreement and is served with a written notice to pay those arrears by a date specified in the notice, the member’s membership will terminate automatically upon failure to effect payment by the date specified. |
| (2) | A person whose membership is terminated in terms of subitem (1)— |
| (i) | does not have a right to appeal the termination; |
| (ii) | may only be re-admitted to membership if such person pays the arrears that were due at the date when his or her membership was terminated, as well as any other payments due by virtue of that person’s continued occupancy after that date, if applicable. |
| (3) | The board of directors may terminate the membership of a member in circumstances other than those set out in subitem (1) if there is good and sufficient reason to do so: Provided that— |
| (i) | the board of directors gives the member concerned reasonable notice that termination is contemplated for reasons stated in that notice; and |
| (ii) | the member is afforded the right to be heard before a decision is taken. |
| (4) | A member whose membership is terminated in terms of subitem (3) may appeal to a general meeting, within a time limit set out in the constitution of a co-operative. |
| (5) | A decision of the board of directors to terminate the membership of a member is confirmed if the members, at a duly called general meeting, do not reverse the decision by the board of directors. |
| (6) | If a general meeting is called to consider the appeal of a member whose membership is terminated and a quorum of members is not present, the decision of the board of directors is confirmed. |
| (7) | A member has the right to occupy the unit allocated to him or her until the termination is confirmed by the members: Provided that the member— |
| (i) | has lodged the appeal to the members within the time limit set out in the constitution; and |
| (ii) | is not in arrears with any payments. |
| (8) | Once a person no longer has a right to occupy a housing unit, the co-operative may regain possession by consent or by obtaining an order of court from a magistrate’s court to evict that person. |
| (9) | Nothing in this item precludes the board of directors of a primary co-operative from entering into an agreement with a secondary housing co-operative that the secondary housing co-operative will manage on behalf of the primary co-operative the following: |
| (i) | The collection of payments from members; |
| (ii) | the service of any notice such as envisaged in subitem (1) above; and |
| (iii) | the institution of any proceedings to evict a person. |