Prescribed Management Rules vs Conduct Rules: What's the Difference?
Owners often confuse management rules with conduct rules – but they govern very different things, and changing them requires different processes. Here's how to tell them apart.
PPSP Team
Professional Property Solutions Provider
Every sectional title scheme operates under two distinct rule sets, and mixing them up is one of the most common governance mistakes we see.
Management Rules: The Administrative Framework
Management rules govern how the body corporate itself functions – its internal machinery. They cover things like:
- How trustees are elected and how many may serve
- Meeting procedures, notice periods, and quorum
- Financial management, budgeting, and levy collection
- Insurance obligations and maintenance responsibilities
- Record-keeping and access to scheme documents
The Prescribed Management Rules (PMR) are set out in regulations under the STSM Act and apply automatically unless a scheme has adopted its own substituted management rules – which still require CSOS approval and can't contradict the Act itself.
Conduct Rules: Day-to-Day Behaviour
Conduct rules regulate how owners and occupiers use their sections and the common property – the practical, lived-in rules of the scheme:
- Noise, nuisance, and behaviour standards
- Pet ownership and restrictions
- Parking allocation and visitor parking use
- Use of common facilities like pools, gyms, or braai areas
- Rules on renovations, signage, and exterior appearance
Changing Each Rule Type
Management Rules
- Can only be changed by special resolution
- Must be filed with and approved by CSOS to take effect
- Cannot be inconsistent with the STSM Act itself
Conduct Rules
- Generally changed by special resolution (though the threshold can differ from management rules)
- Must be reasonable and applied consistently to all owners
- Filed with CSOS but subject to a different, typically simpler, approval process
Why the Distinction Matters in Practice
Getting this wrong has consequences: trustees who try to solve a behavioural problem by tweaking a management rule (or vice versa) risk passing an invalid or unenforceable rule. Enforcement action based on the wrong rule category can also be successfully challenged at CSOS.
Two Rulebooks, One Scheme
Management rules keep the body corporate's engine running; conduct rules keep the neighbourhood liveable. Both matter, but they serve different purposes and follow different amendment processes.
Need Your Rules Reviewed or Updated?
PPSP helps trustees draft, amend, and correctly file both management and conduct rules with CSOS.
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