1. Learning Objectives
5. Analysing the Rules Pertaining to an Informal and a Governing Body by:
Comprehending the types of Informal Bodies
Examining the Banking requirements of an Informal Body
Examining the Banking requirements of a Governing Body of a Sectional Title
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2. Criteria
Analye the Rules Pertaining to an Informal and a Governing Body
Define an Informal Body
List the types of Informal Bodies
Describe the contractual capacity of an Informal Body
Define a Governing Body of a Sectional Title
Describe the Contractual Capacity of a Governing Body
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3. Types of Informal Bodies
Clubs and Associations
Friendly Societies
Building Funds (Schools and Churches)
Syndicates
The People’s Benefit Scheme
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4. Informal Body as a Legal Entity
Normally, an Informal Body is not regarded as a legal entity, except, if the Informal Body has a Constitution and it is clear from its Constitution that the following is applicable:
1. The Informal Body must have continual succession
2.  It must exist separately from its Members
3.  It must be the sole owner of all its assets
4.  There must be an indication that it has been the founder’s intention that the Informal Body should be empowered with corporate existence
5. The Informal Body’s Members must have no rights to its assets
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5. Governing Body of a Sectional Title
The name of the Body Corporate must always reflect the name of the building and the scheme number
In itself, a Sectional Title has no contractual capacity and is not a legal entity
The legal entity is the Body Corporate of the building, consisting of:
The Trustees nominated by the title owners
Land that has been divided into sectional property in terms of the development scheme
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