Section 36(7) of the Act states that within 60 days of establishment, the developer is obliged to convene a meeting of the new body corporate. The agenda for this meeting, of which at least seven days notice must be given, is prescribed by section 36 and by management rule 50, and includes at least the following:

Election of Trustees.

Approval of the schedule of insurance replacement values. Approval of the budget for the following year.

Approval of the financial statements relating to the body corporate from date of establishment to date of notice of the meeting.

Taking cession of contracts that the developer may have entered into concerning the future body corporate.

Appointment of an auditor, or where applicable, an accounting officer.

Any restrictions which the body corporate might want to impose on the trustees.

Determination of the address of the body corporate.

In addition to the above, at the first meeting the developer has to supply the body corporate with the following:

•     A copy of the sectional plan, approved by the Surveyor General.

•     A certificate from the local authority to the effect that all rates due by the developer up to the date of establishment have been paid.

•     Proof of revenue and expenditure concerning the management of the scheme from the date of the first occupation of any unit until the date of establishment.

The purpose of this meeting is to transfer control of the scheme from the developer to the body corporate. The developer will remain a member of the body corporate until such time as the last unit registered in the developer's name is transferred into the name of the new owner.

During this period, the developer is responsible for full levy payments on the units registered in his or her name and which form part of the scheme, even if the sections are unoccupied.