Fiduciary Duty in Practice – Trustee/Director Governance Checklist (Quick Reference)
Use this as a practical “do we have our house in order?” checklist for trustees/directors. It’s designed to support good governance, reduce disputes, and ensure decisions are defensible if questioned by owners, auditors, insurers, CSOS, or legal advisors.
1) Governance Foundations
Confirm your scheme type and governing documents
- Confirm whether you are
- Sectional Title
- HOA
- other community scheme
- Identify the governing framework that applies (e.g., STSMA + Rules + CSOS Act / MOI + Companies Act + CSOS Act)
- Ensure the board has the latest adopted rules / MOI version on file
- Ensure architectural/aesthetic guidelines exist (especially for HOAs)
Trustee/Director structure (within 7 days of election is ideal)
- Hold the first board meeting
- Elect a Chairperson
- Allocate portfolios (recommended for discipline and accountability), e.g.:
- Finance & budget oversight
- Maintenance & projects
- Conduct rules & enforcement
- Insurance & risk
- Communication / owner updates
- Agree on a meeting cadence (monthly/bi-monthly/quarterly)
- Confirm board communication channels (email/WhatsApp/Teams) and how decisions will be documented
2) Meeting and Decision Documentation (Non-Negotiable)
Every decision must be traceable
- Ensure every key decision is backed by one of these:
- Minuted meeting decision
- Email round-robin vote (recorded outcome + date)
- Signed written resolution (including digital signing)
- Ensure each record clearly states:
- Decision taken
- Date
- Who participated / who voted
- Outcome (approved / rejected)
- Any declarations of conflict and recusals
Minutes and filing
- Minutes captured for board meetings and general meetings
- Minutes stored in a central scheme file (and/or ANGOR Online document repository if used)
- Key supporting documents attached to minutes/resolutions (quotes, budgets, insurer confirmations, correspondence)
3) Conflict of Interest & Recusal Checklist
At every meeting / decision point
- Ask: Does any trustee/director have a personal or indirect interest in this matter?
- If yes:
-
- Conflict is declared on record
- Trustee/director is recused from discussion and vote
- Board proceeds with an objective process (e.g., multiple quotes / fair comparison)
4) Financial Oversight Checklist (Monthly / Quarterly Rhythm)
Monthly / ongoing checks
- Review the management report (high-level is fine, but it must be reviewed)
- Track debtor trends and arrears risk
- Confirm payments to service providers align with approvals and budgets
- Ensure levy collection process is active and consistent
Budget planning
- Draft budgets timeously (ideally before year-end / AGM planning)
- Confirm levy increase authority:
-
- Sectional Title: confirm board limits and when owner approval is required
- HOA: confirm MOI provisions and directions/restrictions
- Ensure special levies are treated as exceptional, not routine
- Confirm reserve planning / future projects are being considered (maintenance planning supports this)
Audit workflow oversight (even if outsourced)
- Confirm audit file submission date to auditors
- Track audit queries and response deadlines
- Align audit completion with AGM timelines so compliance does not slip
5) Insurance & Risk Checklist (At least annually)
Annual broker “check-in” (recommended)
- Review current policy cover, key limits, endorsements and exclusions
- Confirm trustee indemnity, public liability, fidelity cover, and other key protections
- Confirm valuations are up to date (as required / recommended)
- Confirm major assets/equipment are correctly recorded (e.g., cameras, access systems, pumps)
Risk awareness
- Identify recurring risk drivers (water leaks, burst pipes, security incidents, maintenance backlogs)
- Ensure the scheme has a plan to reduce repeat losses and avoid exclusions
6) Maintenance Planning & Project Governance
Practical maintenance governance
- Ensure a forward-looking maintenance plan exists (and is treated as a live document)
- Review planned projects annually and update priorities
- Ensure project decisions are documented (scope, quotes, approvals, timelines)
- Keep owners informed at a high level (progress and key outcomes)
7) Rule Enforcement & Fairness
Consistency is a governance protection
- Apply rules equally to all owners/residents
- Keep a record of historical approvals and resolutions (avoid “one owner was allowed, another wasn’t”)
- Ensure enforcement steps are documented (warnings, meeting invitations, decisions)
- If fines/penalties exist, confirm rules prescribe a clear process (warnings + right to be heard)
8) Owner Communication Checklist (Simple but Effective)
Set a communication rhythm that prevents conflict
- Send periodic high-level updates (monthly or quarterly works well)
- Communicate:
- key maintenance progress
- major decisions and rationale (high-level)
- financial health indicators (high-level)
- reminders about rule compliance and shared responsibilities
- Keep communication factual, consistent, and recorded
9) AGM / SGM Compliance Checklist
AGM readiness
- Confirm AGM is scheduled within the required timeframe (scheme-type dependent)
- Ensure notice, agenda, quorum calculations and supporting documents are prepared
- Ensure financials/budgets are ready and aligned to discussion items
- Ensure minutes and resolutions are stored properly after the meeting
When owners request action
- Understand and follow the correct process if owners raise petitions or request SGMs
- Respond within required timelines to avoid governance escalation and disputes
10) “Red Flag” Quick Scan (If any are true, prioritise these)
- Decisions are being made verbally with no written record
- Trustees/directors frequently miss meetings with no catch-up on decisions
- Conflicts of interest are not declared or recorded
- Audit completion is late or consistently pushes AGM compliance
- Insurance exclusions exist and no corrective action is taken
- Rules are applied inconsistently (or approvals aren’t tracked)
- Owner communication only happens at AGM time (leading to conflict and distrust)