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Legislation and Regulation
The need for the STSMA arose from the complex nature of managing communal living environments where ownership is divided into individual sections and shared common areas. By separating governance rules from the Sectional Titles Act itself, the legislature intended to create clearer, more effective operational rules for sectional title owners and administrators.
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The SBCA was introduced to bring greater transparency and legal certainty to property ownership models where individuals invest in companies rather than directly owning land or units.
Without this legislation, shareholders in these schemes would have little protection against mismanagement or abuse by developers and directors.