Is there legislation that stipulates the retention period of body corporate records?

Question

Answer 1

Yes. The minimum retention period for certain body corporate records is legislated under Management Rule 26(3), Annexure 1 of the Regulations.

📋 Financial Records: 6-Year Requirement

The legislation states that a body corporate must retain its books of account and financial records for a period of six years.

This includes:

Accounting records and ledgers
Bank statements and reconciliations
Invoices and payment records
Financial statements and reports
Tax records and submissions
Audit reports and supporting documentation

📄 Other Records: No Prescribed Period

No other retention periods — for minutes, correspondence, or other records — are prescribed in the legislation.

This means records such as:

AGM and trustee meeting minutes
General correspondence
Member communications
Contractor agreements (non-financial aspects)
Building plans and maintenance records

...do not have a legislated minimum retention period.

✅ Best Practice Recommendation

Any additional record-keeping beyond financial documentation (or for periods longer than six years) would be a matter of internal policy or best practice, not a legal requirement.

However, trustees should consider:

Permanent retention of critical documents like the sectional plan, rules, and resolutions that affect the scheme indefinitely
Extended retention of minutes and important decisions (e.g., 10+ years) for institutional knowledge and dispute resolution
Reasonable retention of correspondence and routine communications (e.g., 3-5 years) for practical reference

The 6-year financial retention period aligns with SARS requirements and provides adequate protection for audit and compliance purposes.

Disclaimer: The information provided here is for general guidance on sectional title legislation and does not constitute formal legal advice. For specific legal interpretation, disputes, or official rulings, consult with qualified legal professionals or the Community Schemes Ombud Service. ELA can make mistakes. Double-check responses.

Answer 2

📘 Legislative References

Management Rule 26(3) - Sectional Titles Schemes Management Act Regulations

"The body corporate must ensure that all the body corporate's books of account and financial records are retained for a period of six years after completion of the transactions, acts or operations to which they relate."

Disclaimer: ELL provides official legislative text and estate rules (such as the Code of Conduct) for information purposes only. It does not constitute legal advice. For assistance with legal interpretation or application, please consult a qualified professional.