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Responsibilities of a Trustee - Part 1

Category Property Management

Responsibilities of a Trustee - Part 1
Article by Kerry Olivier - ANGOR Property Specialists

Trustees are elected by members of the Body Corporate at the annual general meeting. Trustees represent owners in running the affairs of the Scheme.  Ultimately, they take responsibility for managing the finances and the day-to-day affairs of the Scheme.  The Trustees are governed by instructions from the Body Corporate, and by the Management Rules of the Scheme.  Trustees are responsible for managing the Scheme budget, for the collection of contributions (levies) and ensuring that the residents adhere to the rules of the Scheme.  They also manage the common property and the maintenance of the external and communal areas and must ensure that the insurance cover for the Scheme is sufficient.

Trustees may decide to appoint a Managing Agent to assist them in the administrative and financial management of the Scheme.  The Managing Agent will at all times report to the Trustees.

When elected to office, a Trustee should ensure that he / she obtains copies of the Scheme's registered Management Rules, its registered Conduct Rules and the Sectional Title Schemes Management Act 8 of 2011 as soon as possible. 

These documents are available on ANGOR online.

CSOS places a further responsibility on Trustees by directing them to educate themselves on legislation and governance documents of the Scheme.  Furthermore, Trustees are obliged to exercise due diligence in the carrying out of their duties by attending all meetings of the Scheme.

The Trustees may be held personally liable for any act of negligence in this regard, should any other member be able to prove loss or damages suffered by the Body Corporate.

  • Educate himself or herself about the Community scheme and its governance documents
  • Take reasonable steps to obtain sufficient information and advice about all matters to be decided on
  • Attend all meetings including the AGM
  • Excercise an active and independent opinion on all matters to be decided upon
  • Excercise due diligence

Did you know?

A Trustee need not be a member of the Body Corporate.

The Managing Agent or an employee of the Managing Agent may not be a Trustee,
unless he/ she is a member of that Body Corporate.

Author: Kerry Olivier - ANGOR Property Specialists

Submitted 11 Oct 18 / Views 4840