All owners of a unit (or section) within a Sectional Title scheme, are members of the body corporate. Body corporates are responsible for the effective management of Sectional Title estates, including the administration of common areas, the applying of regulations, and enforcement of rules. However, as you can well imagine, this could cause some chaos in the decision-making, which must always be in the best interests of the entire complex and its residents.
This is why the body corporate, at its annual general meeting (AGM), votes and appoints trustees, usually residents, to manage the affairs of the collective body corporate. All the owners are invited to attend the AGM to vote and help direct the trustees to take a particular course of action relative to the workings of the entire external workings of the complex.
Trustees generally perform their role without remuneration. This can put strain on those who do volunteer to be a trustee given that this can be a 24/7 job. In estates where there are large numbers of residents, the trustees may find themselves having to deal with many calls-to-action, requiring an unbiased tactful approach in solving problems,
Trustees undertake this role for many reasons but the overarching one is that they have a vested interest in ensuring that their own investment in the estate is cared for. It is an ideal role for those who are retired, on pension, or have free time,
Chairman
Within the group of trustees, residents must elect a chairman. This leadership role has the responsibility of ensuring that meetings are held, both the annual and other trustee meetings, and ensuring that minutes are kept. They also supervise the allocation of expenses and although they cannot make decisions unilaterally, they do have a final vote in the case of a deadlock. The chairman also leads and directs conversations on strategic matters and must declare outcomes of AGM voting. They also host trustee meetings to discuss issues and agree on solutions to challenges raised by residents.
Trustee portfolios There are a number of duties performed by the trustees, including:
- Ensuring that owner’s pay their levies, which are directed towards the monthly running costs of the complex.
- Appointment of a managing agent (if so required), or ensure that monies received as levies are banked and used as intended.
- Ensure that budgets are not exceeded and insurances are in place.
- Ensure tenants and owners abide by the rules of the complex, and, in fact, trustees even determine some of those rules for presentation and voting at the AGM.
- Ensure that they abide by the Sectional Titles Act, which has a number of legal implications.
- Ensure the complex’s common areas are cleaned, maintained, secure, and managed.
- Ensure an annual audited financial statement is prepared and presented. Handle complaints by owners and tenants.
Individual trustee portfolios
It is good policy to allocate a portfolio to each trustee. Examples of portfolios:
- secretarial, including communications, website, and telecoms - although these can be split among trustees;
- security;
- landscaping, gardens and general appearance of the common areas;
- financial and budgets;
- governance such as legal, compliance, ethics etc;
- utilities such as electrical, refuse, water, sewage, and recycling; maintenance, including swimming pool, boundary walls, painting, and other common area infrastructure.
Number of trustees
The number of trustees within a body corporate, as per the Sectional Title Act, is a minimum of two. Beyond that there is no limit, which means, in a small complex for example, all owners could potentially be trustees. Odd numbers are preferred as this will ensure an outcome when decision-making is required.
Communication
It is important that trustees communicate well with its residents, which is usually through a community WhatsApp group. These have to be carefully monitored with rules established to prevent misinformation, abuse, or excessive posting of non-important or non-relevant messaging by residents. The trustees also have to ensure compliance with the Protection of Personal Information Act, which requires all members of the group to confirm they consent to receiving communications.
Trustees are a vital component in Sectional Title schemes. But remember, while they are a powerful part of the body corporate, they must always work entirely to the benefit of the entire body corporate.
