In our previous newsletter - Part 2, we looked at how a body corporate is established. In this newsletter we will look at the role of the trustees. The best way to describe trustees is to liken them to directors of a company. Although the Companies Act has no bearing whatsoever on sectional title schemes - it is important to remember that trustees are not paid for what they do, like directors of a company are. Trustees are elected by the members of the body corporate at every AGM. They carry out the functions and duties of the body corporate and represent the body corporate in all matters. Together the trustees are what is known as the 'executive organ' of the body corporate. Their main responsibility, is to control, manage and administer the common property for the benefit of all members of the body corporate, to ensure that the rules of the scheme are upheld and that the governance documentation of the body corporate is kept up to date and filed with the Ombud Service. In carrying out their duties, trustees fulfil a fiduciary position. A fiduciary duty is an onerous, legal obligation of a person managing the affairs of another to act in the best interest of such a person. In Part 4 of this newsletter we will look at the Members of the body corporate. Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title
The information contained in this newsletter must be seen as a set of guidelines and does not purport to provide legal or other professional advice. If such advice is needed, consult with your legal or other qualified adviser. CIA will not accept any responsibility towards any person relying upon the contents hereof nor accept any liability whatsoever for the accuracy of information supplied by a third party or the consequences of relying upon it
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