CSOS rules Paarl-based managing company acted unlawfully

The Community Schemes Ombud Service (CSOS) has ruled that Africa Property Group (APG) and its owner Arusha Naidoo, a Paarl-based property management company, acted unlawfully when it continued to serve as managing agent of Ascot Terraces, a housing estate in Milnerton, despite being removed by the homeowners and the estates Body Corporate (BC) through a Special General Meeting (SGM).

Ruling

The ruling, issued on 30 July 2025, comes more than a year after 15 residents lodged a formal complaint with CSOS, following APG’s disputed appointment at the estate in mid-2024.

In the adjudication order CSOS upheld the homeowners’ right to convene an SGM after the previous board of trustees failed to do so despite receiving a valid written request supported by over 50% of unit owners, as required by law.

In a ruling dated 30 July 2025 and shared with 15 applicants from Ascot Terraces, the CSOS confirmed several key finding:

Owners were entitled to call an SGM under Prescribed Management Rule (PMR) 17(4) after their lawful request was ignored.

• The actions of the removed trustees and APG in attempting to prevent the meeting were unlawful.
• All outcomes and decisions taken at a subsequent meeting called by the removed trustees on 11 July 2024 were declared invalid.
• The former trustees were ordered to hand over the scheme’s bank accounts and all control to the new trustees elected during the lawful SGM.

In a separate application lodged by the previous trustees which was consolidated with the main matter, the BC sought to restrict certain homeowners from specific actions.

These included attempts to remove trustees, unauthorised access to bank accounts and property gates, interference with contractors, causing disruptions, disrespecting trustees, breaching the Protection of Personal Information Act (POPIA), and communicating with other owners without proper authority.

The CSOS declined to grant this relief, effectively dismissing the claims made by the previous trustees.

Background to the dispute

Paarl Post first reported on the growing tensions at Ascot Terraces in May 2025, when several residents accused Naidoo of refusing to relinquish her role despite the formal termination of APG’s mandate at an SGM held on 21 August 2024.

Homeowners allege that prior to APG’s appointment, Naidoo had attended the AGM accompanied by two business associates (all holding voting proxies) and that the meeting led to the election of trustees sympathetic to APG.

Within weeks, APG had reportedly replaced the previous managing agent without notice.

When more than half of the owners formally petitioned for a new SGM to terminate APG’s services, their request was ignored by the new sitting trustees. The residents then exercised their right under PMR 17(4) to convene the meeting themselves, leading to the removal of APG and the election of new trustees on 12 August 2024 supported by signatures from over 50% of residents.

Paarl Post first reported on APG in September 2023 which was appointed as the managing agent at De Chavonnes, an apartment complex in Paarl, during early 2023.

Dawid du Toit, a concerned home owner and resident at De Chavonnes, previously told the newspaper that this appointment was unconstitutional, as no Annual General Meeting (AGM) was held to vote on the matter.

Naidoo, in previous email correspondence with Paarl Post, confirmed that APG continues to manage De Chavonnes.

Responses

Lovemore Nyere, Michelle Flynn, Lauren Kansley and Colleen Karayiannis, trustees of Ascot Terrace’s BC said they are “grateful to have [their] homes fully back in [their] care.

“We have a long road to harmonise our financials, but as the recognised trustees of the Ascot Terraces we take this responsibility very seriously. We hope that our successful CSOS ruling is a clarion call to other BC’s to be extremely mindful of what happens in their AGMs and who is allowed to manage their affairs.

According to Musa Sono, head of communications at APG, “APG respects and acknowledges the CSOS decision as set out in the adjudication order”.

Sono said that APG has stepped away from managing Ascot Terraces since the CSOS ruling, and has “no intention” of appealing.

According to Zamangwanya Malgas, spokesperson of the CSOS, there are three pending disputes lodged at the CSOS in which APG is the respondent.