Kouga local municipality has issued an instruction to the SFPO NPC directors to amend the MOI to make it compliant with Kouga municipal property rates policy

In the SFPO NPC Minutes of 6 March 2020, Item 7, it is recorded that Kouga Municipality has instructed the Directors to amend the MOI to make it compliant. This instruction was issued by the Municipality’s Attorney.

In September 2018, the Directors amended the SFPO NPC Memorandum of Incorporation (MOI) making it non-compliant with Kouga’s Municipal Property Rates Policy.

This is one of the major issues raised for the 2019 AGM by the “Group of 31”. The instruction by the Municipality’s legal advisor affirms that the Group of 31 was correct in raising the matter.

The Directors are legally obliged to convene an AGM or Special General Meeting to give members the opportunity to debate proposed MOI amendments and vote whether to adopt the amendments or not. This is stipulated in the Companies Act Section 16 (1) (ii) – MOI amendments must be considered at an AGM or Special General Meeting. Only if 75% of the quorum present at the meeting vote in favour of the amendments, can it be processed.