Becoming & Serving as a Scheme Executive
Scheme Executives, Trustees in a Sectional Title Scheme or Directors in a Homeowners Association, are the decision-makers responsible for managing the community’s affairs. While the role is voluntary, it carries significant responsibilities under South African law.
This article explains how Scheme Executives are elected, what their duties involve, how decisions are made, and the qualities needed to serve effectively.
How Scheme Executives Are Elected
Sectional Title Schemes
Trustees are elected by the members of the Body Corporate at the Annual General Meeting (AGM).
- Eligibility – Any owner, or a person nominated by an owner, can stand for election, unless the non-owner is employed by the scheme or the managing agent.
- Voting – Owners vote in proportion to their participation quota (PQ) unless otherwise stated in the scheme’s rules.
Homeowners Associations
Directors are appointed in accordance with the HOA’s Memorandum of Incorporation (MOI) or Constitution.
- Election procedures may differ but usually occur at the AGM.
- Some HOAs may allow for co-option to fill vacancies between AGMs.
Duties of Trustees & Directors
Scheme Executives are responsible for:
- Managing and maintaining common property and shared facilities
- Ensuring compliance with the STSMA (for Sectional Title) or the MOI/Constitution (for HOAs)
- Enforcing Conduct Rules and ensuring fair application to all members
- Overseeing finances, budgets, and levy collection
- Keeping accurate records and arranging audits where required
- Ensuring buildings and assets are adequately insured
How Decisions Are Made
Decisions are taken by majority vote at Trustee or Director meetings.
- No seconder required – A proposal can be voted on immediately.
- One vote per Trustee/Director – If there’s a tie, the chairperson has a casting vote.
- Conflict of Interest – A Scheme Executive with a personal interest in a matter must disclose it and recuse themselves from voting.
Some decisions require member approval through ordinary, special, or unanimous resolutions, depending on the importance and impact of the decision.
Qualities of a Good Trustee or Director
An effective Scheme Executive should have:
- A responsible attitude and commitment to the scheme’s best interests
- Strong communication and leadership skills
- A good understanding of the governing legislation and rules
- The ability to balance efficiency with fairness when resolving issues
- Willingness to prepare for meetings and engage in informed discussions
- Transparency in disclosing potential conflicts of interest
Common Challenges
Scheme Executives often face:
- Making unpopular but necessary decisions, especially around levy increases or enforcing rules
- Managing difficult owner relationships
- Finding the time to prepare for and attend meetings
- Dealing with complex financial or legal matters
- Balancing personal relationships with impartial decision-making
Conclusion
Becoming a Scheme Executive is an opportunity to directly influence the quality, value, and harmony of your community. While the role requires time, effort, and a commitment to fair governance, it is also rewarding when handled with integrity and professionalism.
ANGOR Property Specialists supports Scheme Executives with training, guidance, and administrative expertise, so they can focus on leadership while we assist with compliance and operations.
The Management Team in a Sectional Title Scheme: Roles and Responsibilities