Responsibilities of a Trustee - Part 2

Category Property Management

Responsibilities of a Trustee - Part 2
Article by Kerry Olivier - ANGOR Property Specialists

Trustee responsibilities include, but are not limited to:

A. Collection of Contributions 

  1. It is the duty of the Trustees to ensure that the contributions levied are adequate to cover the monthly operating expenses of the Scheme.  It is further their responsibility to take all reasonable and available steps to ensure that those owners who default on their monthly payments are dealt with appropriately.
  2. Trustees must keep a record of all Body Corporate transactions, including the financial accounts. They will have to authorise all expenditure (by law, each payment requires the signature of two of the Trustees or a Trustee and the Managing Agent).
  3. Trustees must ensure that payments, as determined by the budget, are made as and when required, and that the budget is not exceeded.
  4. Trustees must not receive any economic benefit, direct or indirect, from the Body Corporate.  
  5. Any and all actual or potential conflicts of interest must be declared to all members of the Body Corporate in writing.

B. Meetings

  1. Trustees are responsible for arranging the AGM and any special general meetings to be held, and for ensuring that all related documentation is readily available and accurate.
  2. The Trustees must ensure that minutes of general and Trustee meetings are maintained, properly recorded and safely stored.  Minutes must state the time, date and place of the meeting, the names and roles of those present, the text of all resolutions, and the results of any votes taken.
  3. Record every resolution passed by the Body Corporate, whether as part of a regular meeting, or as a special / unanimous resolution.

C. Conduct Rules

  1. Trustees bear the responsibility to ensure that the owners, their tenants and their visitors abide by the Rules, as determined by the Body Corporate.
  2. They must further ensure that they and the other Trustees abide by the Sectional Title Schemes Management Act.
  3. They must also ensure that the Managing Agent, and any other agents used to assist the Trustees in their duties, abide by the Sectional Title Schemes Management Act.

D. Management of Common Property

  1. Trustees are responsible for the control, administration and management of the common property, for the benefit of all owners.
  2. They manage the maintenance of common property, ensuring it is always in good repair and does not depreciate in value. Examples: Gardens, swimming pools, perimeter walls, paving, roofs, etc.
  3. They attend to the insurance of all buildings and improvements, and must ensure that the Scheme is adequately covered at all times to ensure that the owners' investment is not at risk. 
  4. For the day-to-day on-site management of common property, an Estate Manager may be appointed to ease the administrative burden this places on the Trustees. 

Did you know?

A Trustee of a Body Corporate who acts in breach of his / her fiduciary relationship
is liable to the Body Corporate for any loss suffered as a result thereof. 

Author: Kerry Olivier - ANGOR Property Specialists

Submitted 11 Oct 18 / Views 5390