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Communal Property Associations Act, 1996

Act 28 of 1996

Communal Property Associations Act, 1996
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Act 28 of 1996
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South Africa

Communal Property Associations Act, 1996

Act 28 of 1996

  1. [Amended by Land Affairs General Amendment Act, 1998 (Act 61 of 1998) on 28 September 1998]
  2. [Amended by Rural Development and Land Reform General Amendment Act, 2011 (Act 4 of 2011) on 16 May 2011]
  3. [Amended by Communal Property Associations Amendment Act, 2018 (Act 20 of 2018) on 8 October 2024]
ACTTo enable communities to form juristic persons, to be known as communal property associations in order to acquire, hold and manage property on a basis agreed to by members of a community in terms of a written constitution; to provide for the establishment of the Communal Property Associations Office, to provide for the appointment and functions of the Registrar; and to provide for matters connected therewith.[longtitle substituted by section 22 of Act 20 of 2018]
WHEREAS it is desirable that disadvantaged communities should be able to establish appropriate legal institutions through which they may acquire, hold and manage property in common;AND WHEREAS it is necessary to ensure that such institutions are established and managed in a manner which is non-discriminatory, equitable and democratic and that such institutions be accountable to their members;AND WHEREAS it is necessary to ensure that members of such institutions are protected against abuse of power by other members;[preamble substituted by section 23 of Act 20 of 2018]BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa, as follows:—

1. Definitions

In this Act, unless the context indicates otherwise—“association” means a communal property association which is registered or qualifies for registration in terms of section 8;"authorised officer" means a person designated as such by the Registrar;[definition of "authorised officer" substituted by section 1(a) of Act 20 of 2018]“committee” means a committee elected by the members of an association to manage the affairs of that association;“community” means a group of persons, which wishes to have its rights to or in particular property determined by shared rules under a written constitution and which wishes or is required to form an association as contemplated in section 2;“constitution” means a constitution adopted in terms of section 7 by an association;"CPA Office" means the Communal Property Associations Office contemplated in section 2B and its regional offices;[defintion of "CPA Office" inserted by section 1(b) of Act 20 of 2018]"Department" means the Department of Rural Development and Land Reform;[defintion of "Department" inserted by section 1(b) of Act 20 of 2018]"Director-General" means the Director-General of Rural Development and Land Reform;[definition of "Director-General" substituted by section 30 of Act 4 of 2011]“holding of properly in common” means the acquisition, holding and management of property by an association on behalf of its members, in accordance with the terms of a constitution;“interim committee” [definition of "interim committee" deleted by section 1(c) of Act 20 of 2018]“members” means the members of an association or the members of a community, as the case may be, including members who comply with the provisions of paragraph (i) of 5 of the Schedule, and for the purposes of sections 12, 13 and 14, shall mean those members whose names appear on a list contemplated in the said 5;"Minister" means the Minister of Rural Development and Land Reform;[definition of "Minister" substituted by section 30 of Act 4 of 2011]“prescribed” means prescribed by regulation;“property” includes movable and immovable property and any right or interest in and to movable or immovable property or any part thereof;"provisional association" [definition of "provisional association" deleted by section 1(d) of Act 20 of 2018]“register” means the register contemplated in section 2D(d);[defintion of "register" substituted by section 1(e) of Act 20 of 2018]"Registrar" means the Registrar of Communal Property Associations contemplated in section 2C(1);[defintion of "Registrar" inserted by section 1(f) of Act 20 of 2018]"Registration Officer" [definition of "Registration Officer" substituted by section 30 of Act 4 of 2011 and deleted by section 1(g) of Act 20 of 2018]"similar entity" means a trust as contemplated in the Trust Property Control Act, 1988 (Act No. 57 of 1988), a co-operative as contemplated in the Co-operatives Act, 2005 (Act No. 14 of 2005), or any other recognised association of persons or a company registered in terms of the Companies Act, 2008 (Act No. 71 of 2008);[definition of "similar entity" substituted by section 1(h) of Act 20 of 2018]"this Act" includes any regulations made in terms of this Act.

2. Application of Act

(1)The provisions of this Act shall apply to a community—
(a)which by order of the Land Claims Court or any other competent court is entitled to restitution under the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994), where that Court has ordered restitution on condition that an association be formed in accordance with the provisions of this Act;
(b)which is entitled to restitution in terms of Act No. 22 of 1994, and which community has entered into an agreement with the Minister as contemplated in section 42D of that Act, where it is a condition of such restitution that an association be formed in accordance with the provisions of this Act;
(c)which is entitled to restitution in terms of Act No. 22 of 1994, and is the beneficiary of land purchased, acquired or expropriated in accordance with the provisions of section 42E of that Act, where it is a condition of such restitution that an association be formed in accordance with the provisions of this Act;
(d)which is entitled to, or receiving property, or other assistance from the State in terms of an agreement or in terms of any law, where the Minister has approved such community in terms of subsection (2) and on condition that an association be formed in accordance with the provisions of this Act;
(e)to which any property has been donated, sold or otherwise disposed of by any other person, where the Minister has approved such community in terms of subsection (2) and on condition that an association be formed in accordance with the provisions of this Act;
(f)approved by the Minister in terms of subsection (2), and which is a group acquiring land or acquiring rights to land and which wishes to form an association in accordance with the provisions of this Act;
(g)to which any property has been awarded in terms of any legislation, where the Minister has approved such community in terms of subsection (2) on condition that an association be formed in accordance with the provisions of this Act; and
(h)contemplated in subsection (5).
(2)The Minister may, with due regard to the objects of this Act, approve a community contemplated in paragraph (d), (e) (f) or (g) of subsection (1) for the purposes of this Act if he or she is satisfied that it is in the public interest and the interests of the community that such approval be given, having regard to the nature and current use of the land.
(3)The Minister may on application by a similar entity and on advice of the Registrar, or by order of any court, and having had due regard to the objects of this Act and the public interest, by notice in the Gazette, and subject to such qualifications or conditions as he or she may determine—
(a)make any provision of this Act applicable to such entity; or
(b)declare such entity to be an association as contemplated in this Act and make any provision of this Act applicable to such an association: Provided that such an entity must, within three months from the date on which it has been declared an association, apply for deregistration in accordance with the provisions of the relevant Act in terms of which it was registered and provide the Registrar with copies of such application and upon deregistration, with copies of the correspondence confirming such deregistration.
(4)For the purposes of subsection (3)(a), any reference to an association shall be deemed to be a reference to the entity in question.
(5)Where a community has, prior to or after the commencement of this Act, established a similar entity through a democratic process, the Registrar may, if such community wishes to establish an association contemplated in this Act, exempt such community from the provisions of section 6, 7 or 8 as may place an unnecessary burden on the community, having regard to the procedure that was followed by the community in establishing such entity.
(6)A condition by the Minister that an association be formed as contemplated in section 2(1) shall only be made after a community has taken a resolution to form an association and informed the Minister of such a resolution.
[section 2 substituted by section 2 of Act 20 of 2018]

2A. General plan and registration of property

(1)Notwithstanding section 2 and section 42A of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994), property contemplated in this Act shall be registered in the name of the association within a reasonable time.
(2)For the purposes of the registration of property in terms of the Deeds Registries Act, 1937 (Act No. 37 of 1937) as contemplated in section 2, the Department shall, in consultation with the community concerned, have a general plan for such property prepared for approval in terms of the Land Survey Act, 1997 (Act No. 8 of 1997), in instances where a general plan is required for such purposes.
(3)The general plan contemplated in subsection (1) shall outline parts of the property reserved for—
(a)economic, social, environmental and sustainable development and infrastructure investment for the community concerned;
(b)crop fields, grazing land, waterways, woodlands, conservation, recreational and any other purpose for the community concerned;
(c)the provision of economic, social and other services for the community concerned; and
(d)subdivided portions for residential, industrial and commercial purposes.
(4)The Minister may prescribe the format for the general plan.
(5)The Minister shall, from monies appropriated by Parliament for this purpose, pay the costs of transfer, surveying and registration required to give effect to this Act.
[section 2A inserted by section 3 of Act 20 of 2018]

2B. Establishment of CPA Office

An office called the Communal Property Associations Office is hereby established within the Department.[section 2B inserted by section 3 of Act 20 of 2018]

2C. Appointment and conditions of service of Registrar

(1)The Minister shall, subject to the laws governing the public service, appoint a person as the Registrar of Communal Property Associations.
(2)The Registrar may, with the consent of the Director-General, establish a regional office for any area as may be agreed to by the Director-General, and may subject to the laws governing the public service, appoint a Deputy Registrar for each such office, to perform the functions of the Registrar in such office, subject to the control of the Registrar.
(3)The Registrar shall have minimum qualifications and experience as well as skills as may be determined by the Minister.
(4)The remuneration of the Registrar shall be determined by the Minister in consultation with the Minister of Finance.
(5)The Director-General shall in consultation with the Registrar designate any person within the Department with relevant qualifications to perform duties in the office of the Registrar or the Deputy Registrar.
[section 2C inserted by section 3 of Act 20 of 2018]

2D. Functions of Registrar

The Registrar is responsible for the administration of the CPA Office and any regional office, and shall—
(a)with the consent of the Director-General, establish a provincial office in each province and may, subject to the laws governing the public service, appoint a Deputy Registrar for each provincial office, to perform the functions of the Registrar in such office, subject to the control of the Registrar;
(b)provide assistance to the communities and associations concerned for the purposes of this Act;
(c)ensure the verification of members of the association;
(d)register associations, subject to the provisions of this Act, and keep record of all certificates of registration issued, copies of such certificates issued or addendums to such certificates issued in accordance with the provisions of section 8(3);
(e)ensure compliance by associations with the provisions of this Act;
(f)keep a register of registered associations and entities to which provisions of this Act have been made applicable in terms of section 2(3)(a), including entities declared as associations in terms of section 2(3)(b);
(g)safeguard the register referred to in paragraph (d) and the seal referred to in section 3;
(h)keep record of any bank account opened in the name of an association and any letter issued in terms of section 9(1)(e)(iii);
(i)keep record of any delegation made in terms of this Act and regularly review such delegations;
(j)collect and keep record of any information required for the purposes of the annual report referred to in section 17;
(k)regularly advise the Minister and Director-General respectively on the review of any regulations prescribed or fees determined in terms of this Act;
(l)on request, provide members of the public with copies of the constitution of any association or similar entity, or with information contained in the register or any other relevant records, in accordance with and subject to the provisions of the Promotion of Access to Information Act, 2000 (Act No. 2 of 2000);
(m)impress the seal referred to in section 3 on any certificate of registration referred to in section 8(3)(a), on any copy of a certificate of registration referred to in section 8(3)(b), or on any addendum referred to in section 8(3)(c), on any letter referred to in section 9(1)(e)(iii) and on any other document as may be prescribed; and
(n)perform any other functions assigned to the Registrar in this Act, directed by any court, or as may be requested by the Minister or Director-General to achieve the objects of this Act.
[section 2D inserted by section 3 of Act 20 of 2018]

3. Seal of Communal Property Associations

There shall be a seal of Communal Property Associations and judicial cognizance may be taken of the impression of such seal.

4. Exemption from liability

No act or omission of whatever nature by the Director-General, Registrar or any officer or other person performing functions under the authority of the Director-General or Registrar, as the case may be, in terms of this Act, shall subject the Director-General, the Registrar, or any such officer or person to any liability for any loss or damage sustained by any person as a result of any such act or omission, unless such act or omission was in bad faith or constituted gross negligence.[section 4 substituted by section 4 of Act 20 of 2018]

5. ***

[section 5 repealed by section 5 of Act 20 of 2018]

6. Drafting of constitution

(1)A community wishing to register an association under this Act may apply to the Registrar for assistance in the preparation of a draft constitution.
(2)The Registrar shall, after receiving an application in terms of subsection (1), designate any officer in the CPA Office or any other suitable person to provide the community with such assistance as may be required and available for the preparation of a draft constitution.
(3)A community must submit a draft constitution to the Registrar for consideration.
(4)The Registrar may suggest amendments to such draft constitution in order to make it comply with the provisions of section 9, and shall notify the community of the reasons for such suggestions.[section 6 amended by section 31 of Act 4 of 2011 and substituted by section 6 of Act 20 of 2018]

7. Adoption of constitution

(1)When a community wishes to adopt a constitution it shall notify the Registrar accordingly, within a reasonable period of time and shall convene a meeting or meetings in such a manner as may be prescribed for the adoption of constitutions: Provided that a constitution shall be adopted by a resolution of no less than 60% of the total number of the verified members of the association having the right to make decisions.[subsection (1) substituted by section 7(a) of Act 20 of 2018]
(2)An authorised officer shall attend the meeting or meetings contemplated in subsection (1), to take minutes of the proceedings, to witness the adoption of the constitution and to prepare a report setting out his or her observations in relation to—
(a)whether the notice of the meeting was effective in ensuring the presence of members of the community at the meeting;
(b)the number of members of the community present at the meeting or validly represented at the meeting, and whether the various interest groups in the community were represented at such meeting;
(bA)whether members of the association have been properly identified by the community;[paragraph (bA) inserted by section 7(b) of Act 20 of 2018]
(c)the number of members of the community who voted in favour of and the number who voted against the adoption of the constitution or any specific provisions thereof;
(d)whether the interests of any person or group of persons are likely to be adversely affected as a result of the adoption of the constitution;
(e)the views of any dissenting persons; and
(f)any other matter which the Minister may prescribe or which may be relevant to the exercise of the Registrar’s discretion.[paragraph (f) substituted by section 7(c) of Act 20 of 2018]
(3)The community shall, as soon as practicable after the adoption of the constitution, submit it together with the prescribed information to the Registrar.[subsection (3) substituted by section 7(d) of Act 20 of 2018]
(4)Any person claiming to have been excluded from participation in the process of preparation and adoption of the constitution or claiming that the process was not fair may lodge a complaint with the Registrar, who may, if he or she is satisfied on reasonable grounds that the complaint is material, refuse to register the association until the issue has been resolved to the satisfaction of the Registrar.[subsection (4) substituted by section 7(d) of Act 20 of 2018]

8. Registration of associations

(1)The Registrar shall consider an application for registration of an association together with any prescribed information, the report referred to in section 7(2) and the constitution adopted by the association.[subsection (1) substituted by section 8(a) of Act 20 of 2018]
(2)An association shall qualify for registration if—
(a)the provisions of this Act apply to the community concerned;
(b)the association has, as its main object the holding of property in common;[paragraph (b) substituted by section 8(b) of Act 20 of 2018]
(c)the constitution adopted by it complies with the principles set out in section 9;
(d)the constitution adopted by it deals with the matters referred to in the Schedule;
(e)the meeting or meetings referred to in section 7 were attended by a substantial number of the members of the community; and
(f)the resolution to adopt the draft constitution was supported by the majority of the members of the community present or represented at the meeting or meetings:
Provided that the Registrar may cause an association to be registered if he or she is satisfied that—
(i)there has been substantial compliance with the provisions of paragraphs (a) to (f) of this subsection;
(ii)the constitution reflects the view of the majority of the members of the community; and[subparagraph (ii) substituted by section 8(d) of Act 20 of 2018]
(iii)the constitution has been adopted through a process which was substantially fair and inclusive.
[subsection (2) amended by section 8(c) of Act 20 of 2018]
(3)
(a)If the Registrar is satisfied that the association qualifies for registration he or she shall register the association in the prescribed manner, allocate a registration number, and issue a certificate of registration.
(b)The Registrar shall, if a certificate of registration contemplated in paragraph (a) is lost or destroyed, on written application by the association and on payment of the fees determined by the Director-General, issue the association with a copy of the certificate filed in the Registrar’s Office and shall indicate on such copy that it is a true copy of the original certificate.
(c)The name of an association may be changed in accordance with the prescribed procedure and if the Registrar is satisfied that such procedure has been followed, he or she may issue an addendum to the certificate of registration, indicating the new name of the association.
(d)When the name of an association is changed as contemplated in paragraph (c), the Registrar shall inform the Registrar of Deeds in whose area of jurisdiction the immovable property which is administered by the association is situated, and the Registrar of Deeds shall endorse the community’s title deed to reflect the new name of the association.
[subsection (3) substituted by section 8(e) of Act 20 of 2018]
(4)If the Registrar is not satisfied that the association qualifies for registration he or she shall notify the community of the steps to be taken to procure the registration of the association.[subsection (4) substituted by section 8(e) of Act 20 of 2018]
(5)The Registrar shall assist a community to deal with any issue which is to be addressed in order to procure the registration of the association.[subsection (5) substituted by section 8(e) of Act 20 of 2018]
(6)Upon registration of an association—
(a)the association shall be established as a juristic person, with the capacity to sue and be sued;
(b)the association may acquire rights and incur obligations on behalf of the community concerned, in its own name in accordance with its constitution;
(c)the association may, on behalf of the community concerned, subject to the provisions of its constitution and section 12—
(i)acquire and dispose of immovable property and real rights therein; and
(ii)encumber such immovable property or real rights by mortgage, servitude, or lease or in any other manner;
(d)the association shall have perpetual succession regardless of changes in its membership;
(e)the constitution shall be a legally binding agreement between the association and its members, the association and members of the committee and shall be deemed to be a matter of public knowledge;
[subsection (6) substituted by section 8(f) of Act 20 of 2018]
(7)[subsection (7) deleted by section 8(g) of Act 20 of 2018]
(8)[subsection (8) deleted by section 8(g) of Act 20 of 2018]
(9)An association registered under this Act shall reflect on all correspondence and contracts the fact that it is so registered, and its registration number.
(10)No amendment of a constitution of an association registered under this Act shall be valid or binding until it has been lodged with and accepted in writing by the Registrar.[subsection (10) substituted by section 8(h) of Act 20 of 2018]
(11)The provisions of sections 6 and 7 and subsections (1) to (5) of this section, shall apply with the necessary changes, with regard to any proposed amendment of the constitution of an association registered under this Act: Provided that the Registrar shall waive compliance with the provisions of section 7 if he or she is satisfied that the amendment was adopted in terms of the constitution, that the nature of the amendment is such that compliance with those provisions is not necessary, and that the amendment does not have a material adverse effect on the rights of members.[subsection (11) substituted by section 8(h) of Act 20 of 2018]

9. Principles to be accommodated in constitutions

(1)The constitution of an association shall be consistent with the following general principles:
(a)Fair and inclusive decision-making processes, in that—
(i)all members are afforded a fair opportunity to participate in the decision-making processes of the association;
(ii)any decision to amend the constitution or dissolve the association, or to dispose of or to encumber immovable property, requires a resolution of no less than 60% of the verified members of the association who have the right to make decisions; and[subparagraph (ii) substituted by section 9(a) of Act 20 of 2018]
(iii)the membership of any person may only be terminated on reasonable grounds by the association after the matter has been considered at a fair hearing at which the member was given an opportunity to present his or her case;
(b)fair and non-discriminatory membership, in that—
(i)there is no discrimination against any prospective or existing member of the community, directly or indirectly, and, without derogating from the generality of this provision, on one or more of the following grounds, namely race, gender, sex, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, culture or language: Provided that a constitution may reflect the rules of a community with regard to the age at which a member may attend and vote at meetings of the association and the age at which a member may receive an allocation of land rights;
(ii)where different classes of membership are created—
(aa)the basis for differentiation is compatible with the overriding principle of equality;
(bb)and a community already occupies land, different classes shall not lead to different rights to land or resources among those members of the community who occupy the land, where no such differentiation existed previously; and
(cc)all members within a class of membership have equal rights;
[paragraph (b) amended by section 9(b) of Act 20 of 2018]
(c)democratic processes, in that all members have the right—
(i)to receive adequate notice of all general meetings of the association;
(ii)to attend, speak at and participate in the voting at any general meeting;
(iii)to receive copies of minutes or to have other reasonable access to records of decisions taken at general meetings;
(iv)to inspect and make copies of the financial statements and records of the association; and
(v)to have access to a copy of the constitution;
(d)fair access to the property of the association, in that—
(i)the association shall manage property owned, controlled or held by it for the benefit of the members in a participatory and non-discriminatory manner;
(ii)a member may not be excluded from access to or use of any part of the association’s property which has been allocated for such member’s exclusive or the communal use except in accordance with the procedures set out in the constitution; and
(iii)the association may only sell, donate or encumber the property of the association, or any substantial part of it, in accordance with the provisions of section 12(1);
[paragraph (d) substituted by section 9(c) of Act 20 of 2018]
(e)accountability and transparency, in that—
(i)accountability by the committee or committees to the members of the association is promoted;
(ii)the financial records of the association are subject to an annual independent verification, as approved by the Registrar;[subparagraph (ii) substituted by section 9(d) of Act 20 of 2018]
(iii)all the cash of the association shall be deposited in an account opened in the name of the association with a bank registered in terms of the Banks Act, 1990 (Act No. 94 of 1990), the South African Postbank Limited Act, 2010 (Act No. 9 of 2010), or such other institution as may be approved by the Director-General: Provided that—
(aa)an association may only open an account upon receipt of an original letter issued and signed by the Registrar, confirming that the association complies with the provisions of this Act, that it has been registered in terms of this Act and containing such other information as may be prescribed;
(bb)the letter referred to in subparagraph (aa) shall be addressed to the specific bank or institution where the association wishes to open an account and shall only be valid for the period indicated in the letter; and
(cc)the association shall, within 14 days from opening such an account, provide the Registrar with the account number and such other details as may be required by the Registrar;
[subparagraph (iii) substituted by section 9(d) of Act 20 of 2018]
(iv)the association may not purchase or acquire for consideration securities other than securities which are listed on a licensed exchange as contemplated in section 9 of the Financial Markets Act, 2012 (Act No. 19 of 2012).[subparagraph (iv) substituted by section 9(d) of Act 20 of 2018]
(v)there shall be effective financial management and recording of the transactions of the association;
(vi)the committee members shall have fiduciary responsibilities in relation to the association and its members, and shall exercise their powers in the best interests of all the members of the association.[subparagarph (vi) substituted by section 9(e) of Act 20 of 2018]
(2)The constitution of an association shall be interpreted in a manner which is consistent with the spirit and objects of the principles referred to in subsection (1).

10. Information, dispute resolution and other assistance

(1)The Registrar may have forms, pamphlets and other documents prepared and distributed in order to promote the achievement of the objects of this Act.
(2)The Registrar may, of his or her own accord or at the request of a community, an association or any member thereof, appoint any person who is experienced in dispute resolution and who is acceptable to the parties to a dispute to assist in resolving any issues for the purpose of the preparation or adoption of a constitution or to resolve a dispute between an association and its members or between members or committee members of an association: Provided that if the parties to the dispute do not reach agreement on the person to be appointed, the Registrar may appoint a person who in his or her opinion has adequate experience or knowledge of dispute resolution.
(3)A person appointed in terms of subsection (2) shall attempt to resolve the dispute—
(a)by mediating the dispute;
(b)by determining facts relevant to the resolution of the dispute;
(c)by making a recommendation to the parties to the dispute;
(d)in any other manner that he or she considers appropriate.
(4)The person appointed in terms of subsection (2) shall report to the Registrar and the parties on the result of his or her dispute resolution and make recommendations in relation thereto: Provided that any recommendation accepted by the Registrar shall be binding on the association.
(5)All discussions taking place and all disclosures and submissions made during the dispute resolution process shall be privileged, unless the parties agree to the contrary.
(6)The Registrar may from time to time appoint persons or organisations acceptable to a community and with relevant knowledge or expertise to provide assistance and support to such community for the purposes of section 6.
(7)Any person contemplated in subsection (2) or (6) who is not in the full-time service of the State may from the funds of the Department, be paid such remuneration and allowances in respect of the services rendered as the Minister, with the concurrence of the Minister of Finance, may determine from time to time.
(8)The Minister may, in consultation with the Minister of Finance institute other programmes for the provision of assistance to communities or associations for the purposes of this Act.
[section 10 substituted by section 10 of Act 20 of 2018]

11. Monitoring and inspection

(1)An association registered under this Act shall, at the prescribed times, furnish prescribed documents and information to the Registrar in order to enable him or her to monitor compliance with the provisions of the relevant constitution and this Act.
(2)The Registrar may undertake an inspection of the affairs of an association.
(3)The Registrar may, for the purposes of this section—
(a)inspect and remove, for the purposes of copying only, any records, reports and other documents relating to the affairs of an association and ensure the prompt return of all such documents;
(b)subpoena persons who may have relevant information or documentation in respect of the affairs of an association to appear before him or her to provide information or documentation in relation to the affairs of the association, if the attendance of such persons cannot reasonably be procured otherwise.
(4)A subpoena issued in terms of subsection (3)(b) shall be served in accordance with the manner prescribed for the service of subpoena in terms of the Magistrates’ Courts Act, 1944 (Act No. 32 of 1944).
(5)Any person who is duly subpoenaed in terms of subsection (3)(b) and who fails, without lawful excuse, to appear or to provide the required information or documentation, shall be guilty of an offence and liable to the punishment provided in the said Magistrates’ Courts Act, 1944, for failure to comply with a subpoena issued in terms of that Act.
(6)If a dispute arises within an association the Registrar may, of his or her own accord, or at the request of a member of the association—
(a)undertake an enquiry into the activities of the association, in which event he or she shall take reasonable steps to ensure that interested parties are made aware of the enquiry and of its outcome;
(b)advise the association and the members of their respective rights and obligations;
(c)make a person contemplated in section 10(2) available to assist in the resolution of the dispute;
(d)on good cause shown and having heard the parties concerned, dissolve a committee or relieve a committee member of his or her duties and require the members of the association to conduct an election for a new committee or appoint a new member, if the integrity, impartiality or effectiveness of the committee or any member of the committee is in question;
(dA)appoint an interim committee from amongst members of the association pending the election of a new committee, and the interim committee shall have—
(i)all the powers of a committee; and
(ii)an official designated by the Registrar as one of its members;
(e)initiate proceedings contemplated in section 13; or
(f)take such other reasonable measures as he or she considers appropriate in the circumstances.
(6A)No person convicted of an offence in the Republic or elsewhere which involves dishonesty or any other offence for which he or she has been sentenced to imprisonment without the option of a fine, shall be elected as a committee member or, if such person has already been elected to be a member, he or she shall resign as a member.
(7)When acting in terms of subsection (6) the Registrar shall be guided by the aim of resolving the dispute in accordance with the provisions of the constitution of the association.
(8)The identity of a member making a request in terms of subsection (6) or the fact that a request has been made by a member need not be disclosed if there are reasonable grounds for believing that such member may be victimised.
(9)If the membership of a member has been terminated, the association shall inform the Registrar and provide him or her with the prescribed information relating to the termination.
[section 11 substituted by section 11 of Act 20 of 2018]

12. Approval for certain transactions

(1)An association may not without the consent of the majority of members present at a general meeting of members—
(a)sell, donate or encumber communal land or immovable property of the community or any real rights in respect thereof, or conclude any transaction including any prescribed transaction in respect thereof, or purchase any immovable property, without the prior consultation with the Minister and without a resolution supported by no less than 60% of the members of the association having a right to make decisions as contemplated in item 8 of the Schedule: Provided that if an association decides to sell immovable property, notice of such intention shall be given to the Director-General and the Department shall have the first option to purchase such immovable property: Provided further that the Department shall, within three months from the date of receipt of such notice, inform the association whether it intends purchasing the immovable property or not, and if it decides to purchase, such purchase shall be concluded within nine months from the date of receipt of the notice;
(b)sell, donate or encumber any movable property, or purchase any movable property, without the consent of the majority of members of the community present at a general meeting of members and, if such movable property was bought or is to be bought through financial assistance provided by the Department, without the consent of the Registrar; or
(c)enter into any lease agreement in respect of any immovable property without the consent of the majority of the members of the community and the Registrar: Provided that the Registrar may only provide such consent if, in his or her opinion, the provisions of the lease agreement, including the lease period, the rental to be paid and the purposes for which the property is to be used, are reasonable and in the best interest of the community.
(2)The requirement of consultation with the Minister referred to in subsection (1)(a) and the requirement of consent referred to in subsection 1(b) and (c) may be given in respect of a series of transactions, without identifying each individual transaction.
(3)Any disposal, mortgage, encumbrance, purchase or prescribed transaction in contravention of subsection (1) shall be voidable.
(4)A member who alleges that an association has concluded a transaction contrary to the provisions of subsection (1) may request the Registrar to intervene in challenging the validity of such transaction.
(5)The Registrar may, if he or she considers it desirable having regard to the nature and seriousness of the allegation, make a person contemplated in section 10(2) available to assist in the resolution of the dispute.
(6)The Registrar shall, at the request of an association, appoint an authorised officer to attend a general meeting of an association and to take such other steps as may be necessary in order to certify that a transaction referred to in subsection (1) has been duly approved at a general meeting and is in accordance with the constitution of the association.
[section 12 substituted by section 12 of Act 20 of 2018]

13. Administration, liquidation and deregistration

(1)
(a)A division of the High Court or a Magistrate’s Court having jurisdiction in respect of the area in which the property of the association is situated may, on application made by the Registrar, an association or any member thereof, or any other interested person, place the association under the administration of the Registrar or grant a liquidation order in respect of an association, where the association, because of insolvency or maladministration or for any other cause is unwilling or unable to pay its debts or is unable to meet its obligations, or when it would otherwise be just and equitable in the circumstances.
(b)If an association is placed under the administration of the Registrar as contemplated in paragraph (a), the Registrar shall, subject to any conditions as the Court, Minister or Director-General may determine, administer and manage the affairs of the association and perform the functions of the association in accordance with the provisions of this Act: Provided that if the Registrar is unable to administer or manage the affairs of such an association or if it would be in the best interest of the association that it be administered or managed by another person, the Registrar may, in consultation with the Director-General, appoint any competent person to administer and manage the affairs of the association and to perform the functions of the association in accordance with the provisions of this Act: Provided further that any person so appointed shall act under the supervision of the Registrar.
(c)Any competent person contemplated in paragraph (b) who is not in the full-time service of the State may from funds of the Department be paid such remuneration and allowances in respect of the services rendered as the Minister, with the concurrence of the Minister of Finance, may determine from time to time.
(d)The Registrar shall, in good faith, cover the costs of any expenses related to the administration and management of the affairs of an association placed under his or her administration by defraying from any funds held by the association and should such funds be insufficient, from funds of the Department as may be made available by the Director-General.
(2)[subsection (2) omitted by section 13 of Act 20 of 2018]
(3)The Registrar may, upon written application by an association, cause such an association to be deregistered, if he or she is satisfied that—
(a)a resolution in favour of deregistration was adopted by no less than 60% of the members of the association who were present or represented at the meeting;
(b)the resolution was adopted by at least 60% of the members present or represented at the meeting; and
(c)all relevant matters which reasonably have to be addressed prior to deregistration, including the way in which the assets and liabilities of the association will be dealt with, have been addressed.
(4)Where the Court orders the liquidation of an association, it shall make such order as to the distribution of the assets of the association as it deems just and equitable, having considered any recommendations which the Director-General or Registrar may make in this regard.
(5)The Minister may prescribe the procedure to be followed in an application contemplated in subsection (1), and set out the powers and duties of the Director-General, the Registrar, the association, members and interested parties in those situations.
[section 13 substituted by section 13 of Act 20 of 2018]

14. Offences

(1)A person shall be guilty of an offence if he or she—
(a)in breach of the provisions of a constitution grants or purports to grant to any person rights in respect of the property of an association or access to such property;
(b)acts in breach of the fiduciary relationship contemplated in section 8(7);
(c)abuses any power or authority vested in him or her by the members of the association by doing anything or refraining from doing anything or threatening to do or refrain from doing anything, in such a manner that the benefits or rights of a member are prejudiced or threatened;[paragraph (c) substituted by section 14(a) of Act 20 of 2018]
(d)incites or attempts to incite any person to commit the offence contemplated in paragraph (c);
(e)[paragraph (e) deleted by section 14(b) of Act 20 of 2018]
(f)breaches the provisions of the constitution relating to financial matters;[paragraph (f) added by section 14(c) of Act 20 of 2018]
(g)contravenes the provisions of section 11(9) or 12(1);[paragraph (g) added by section 14(c) of Act 20 of 2018]
(h)interferes with the work of the competent person contemplated in section 13 or an interim committee contemplated in section 11; or[paragraph (h) added by section 14(c) of Act 20 of 2018]
(i)destroys, without the consent of the Registrar, any documents which may serve as proof of an investment, encumbrance, alienation or disposal of communal land or property.[paragraph (i) added by section 14(c) of Act 20 of 2018]
(2)[subsection (2) deleted by section 14(d) of Act 20 of 2018]
(3)In a prosecution or any proceedings for the eviction of any person from property owned, controlled or managed by an association, a certificate issued by the Registrar in terms of subsection (2) shall be prima facie proof of the correctness of the contents thereof.[subsection (3) substituted by section 14(e) of Act 20 of 2018]
(4)Any person convicted of a contravention of subsection (1) shall be liable to a fine or to imprisonment for a period not exceeding ten years or to both such fine and imprisonment.

15. Delegation of powers and assignment of duties

(1)The Registrar may—
(a)delegate to any officer of the CPA Office or Department any power conferred upon him or her by or under this Act, either generally or in a particular case, except the power to register an association;
(b)authorise any such officer to perform any duty assigned to him or her by or under this Act.
(2)Any delegation under this section shall not prevent the exercise of the relevant power by the Registrar himself or herself, and the Registrar shall be entitled to rescind, review or withdraw any decision or action taken by any person to whom he or she has delegated any power.
[section 15 amended by section 6 of Act 61 of 1998, by section 32 of Act 4 of 2011, and substituted by section 15 of Act 20 of 2018]

16. Appeals

Any person aggrieved by a decision of the Registrar or Director-General may in the prescribed manner appeal to the Minister, who may uphold the appeal in whole or in part and rescind or vary the decision, or dismiss the appeal.[section 16 substituted by section 16 of Act 20 of 2018]

17. Annual report

(1)The Registrar shall annually and in respect of the preceding financial year, submit to the Minister a report complying with the provisions of subsection (2), concerning associations and the extent to which the objects of this Act are being achieved, and the Minister shall table the report in Parliament.
(2)The report contemplated in subsection (1) shall indicate the total number of associations registered since the commencement of this Act and in respect of the reporting year, contain information in respect of—
(a)the number of associations registered in compliance with the provisions of section 2(1), including but not limited to the names of the associations, the number of members thereof, and information relating to the immovable property administered and managed by the associations, including but not limited to descriptions of the immovable property and information relating to the provisions of section 12(1);
(b)the number of similar entities declared as associations in terms of section 2(3) or to which the provisions of this Act have been made applicable as contemplated in section 2(3), including the names of the similar entities or declared associations, the number of members thereof, and information relating to the immovable property administered and managed by such entities or declared associations, including but not limited to descriptions of the immovable property and information relating to the provisions of section 12(1);
(c)the number of associations deregistered and the reasons for deregistrations;
(d)any dispute dealt with in accordance with the provisions of this Act, including information in respect of the nature of the dispute, the person appointed to resolve any dispute and the recommendations made by such person and accepted by the Registrar;
(e)the number of associations placed under administration, the reasons therefore, any conditions applicable thereto and the financial implications thereof;
(f)persons found guilty of any offence as contemplated in section 14, including but not limited to the nature of the offence and the sanction imposed;
(g)any appeals lodged in accordance with the provisions of section 16, including but not limited to the nature of the appeal and the decision of the appeal authority;
(h)the budget and expenses of the CPA Office;
(i)any matter as may be directed by the Minister or Director-General;
(j)any matter deemed necessary by the Registrar; and
(k)any matter deemed necessary by the Registrar in relation to the performance of associations generally.
[section 17 substituted by section 17 of Act 20 of 2018]

17A. Fees

(1)The Director-General may, in consultation with the Registrar and the National Treasury, determine any fees payable in terms of this Act and publish such fees in the Gazette.
(2)The Director-General shall, before determining fees in terms of subsection (1), publish the proposed fees for public comment.
[section 17A inserted by section 18 of Act 20 of 2018]

18. Regulations

(1)The Minister may make regulations intended to give effect to the implementation of this Act, including—
(a)the management of associations;
(b)the management of business affairs conducted by or on behalf of the associations; and
(c)the minimum thresholds relating to the sale, donation, encumbrance or purchase of certain categories of movable property.
(2)Any regulation made under subsection (1) may in respect of any contravention thereof or failure to comply therewith prescribe a penalty of a fine or imprisonment or both such fine and imprisonment.
[section 18 substituted by section 19 of Act 20 of 2018]

18A. Transitional provisions

(1)All functions which were, immediately before the commencement of this Act, performed by the Registration Officer, hereby vest in the Registrar.
(2)Any provisional association which at the commencement of this Act has not yet adopted a constitution and has not been registered as an association, must adopt a constitution and be registered as an association within 12 months from the date of commencement of this Act: Provided that the Director-General may, on application made by the provisional association or the Registrar prior to the expiry of the period of 12 months, extend the period with a further 12 months: Provided further that no further extension may be granted and should such a provisional association not adopt a constitution and be registered as an association, it shall cease to exist and any immovable or movable property or any other assets administered and managed by a provisional association must be dealt with by the Registrar in a just and equitable manner or as may be directed by the Minister, having due regard to the public interest.
(3)Any right of a provisional association to administer land prior to the repeal of section 5, remains in force during the period of 12 months or extended period of 12 months referred to in subsection (2) and may not be alienated during such period or extended period.
(4)A provisional association referred to in subsection (2) is a juristic person with the capacity to sue or be sued.
(5)Any association which has been placed under administration of the Director-General prior to the commencement of this Act shall, from the date of appointment of the Registrar, be under administration of the Registrar and subject to any conditions which may have been determined in accordance with the provisions of section 13.
(6)The Director-General shall, in consultation with the Minister, appoint a competent officer of the Department to perform the functions of the Registrar from the date of commencement of this Act, until the post of Registrar is filled.
[section 18A inserted by section 20 of Act 20 of 2018]

19. Short title

This Act shall be called the Communal Property Associations Act, 1996.

Schedule (Section 8(2)(d))

Matters to be addressed in the constitution of a communal property association

1.Name of the association.
2.Address of the association.
3.Objects of the association, including the identity of the community.
4.Land or property to be owned by the association, if known.
5.Qualifications for membership of the association, including a list of the names and, where readily available, identity numbers of the intended members of the association: Provided that where it is not reasonably possible to provide the names of all the intended members concerned, the constitution shall contain—
(i)principles for the identification of other persons entitled to be members of the association; and
(ii)a procedure for resolving disputes regarding the right of other persons to be members of the association.
6.Classes of membership (if any) and the rights of members of different classes.
7.The rights of members to the use of the association’s property.
8.Whether membership is based on individuals or families; if based on families, how the family is to be represented in the decision-making process of the association.
9.The grounds and procedure for terminating membership, and what happens to the rights and property of the member concerned.
10.The property: The purposes for which it may be used, and the physical division and allocation of the property.
11.Whether members may sell their rights and, if so, to whom.
12.What happens to a member’s rights on his or her death.
13.How the committee is to be elected, its terms of office, which shall not exceed five years, its powers, the powers of members in relation to decisions made by the committee, the power of members to remove the committee or members of the committee, and payment (if any) of the committee members.[item 13 substituted by section 21 of Act 20 of 2018]
14.How and when the Annual General Meeting is to be called, the quorum or other measure of representativity at an Annual General Meeting, and procedure at an Annual General Meeting.
15.General Meetings: How and when General Meetings are to be called, the quorum or other measure of representativity at a General Meeting, and procedure at a General Meeting.
16.The powers of the association, and any limitations on them.
17.Who is responsible for keeping minutes of meetings, and access to the minutes by members.
18.Financial matters: How the money of the association will be dealt with, who will have the right to make payments on behalf of the association, how and by whom the financial records will be kept, what provision there will be for independent verification of the financial records, distribution and division of profits, responsi­bility and apportionment of working expenditure, and access to financial information by members.
19.How the constitution may be changed.
20.How the association may be dissolved, and in that event what will happen to the assets of the association.
21.Disciplinary matters, and in particular how corruption, nepotism and offences referred to in section 14 of the Act are to be dealt with.
22.How disputes in the association are to be resolved.
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History of this document

08 October 2024 this version
16 May 2011
Read this version
28 September 1998
Read this version
22 May 1996
Commenced
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15 May 1996
Assented to

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