Understanding the Role of Trustees in a South African Sectional Title Scheme
Sectional title schemes are a common form of property ownership in South Africa, especially in multi-unit residential complexes, apartments, and townhouses. These schemes are governed by the Sectional Titles Schemes Management Act (STSM Act) and managed by a Body Corporate. Within this system, trustees play a vital role in overseeing the affairs and management of the scheme. In this article, we delve into the responsibilities and significance of trustees in South African sectional title schemes.
The Role of Trustees:
Section 7(1) of the STSM Act outlines the pivotal role of trustees in a sectional title scheme. It states that the functions and powers of the Body Corporate, which governs the scheme, are primarily exercised, and performed by the trustees. However, this authority is subject to various provisions within the STSM Act, the rules of the Body Corporate, and any directives or restrictions decided upon in general meetings of section owners.
Trustees as Representatives:
Trustees, appointed in accordance with the rules of the Body Corporate, act as its representatives. They take on an executive role in the ongoing management of the scheme, particularly in the absence of an administrator or an executive managing agent. Trustees are responsible for making crucial decisions, managing finances, and ensuring that the scheme operates smoothly and in accordance with the law.
Exercise of Powers and Functions:
The trustees have the authority to exercise the powers and functions of the Body Corporate, but they must always operate within the legal framework. This means complying with the STSM Act, adhering to the rules set by the Body Corporate, and respecting any directives or restrictions established during general meetings of section owners.
Delegation of Powers:
Trustees have the ability to delegate the Body Corporate's functions and powers to agents and employees. These delegations an important aspect of efficient scheme management, as it allows experts and professionals to handle various aspects of day-to-day operations, such as maintenance, security, and financial management.
Owner-Directed Actions:
One key feature of trustee responsibilities is their obligation to follow directives or restrictions imposed by the majority of owners present or represented at a general meeting. This ensures that the trustees are accountable to the owners and that decisions are made collectively.
For example, owners may decide to restrict the trustees from spending significant amounts of Body Corporate funds without prior approval. Such a resolution, passed during a general meeting, might specify that trustees cannot exceed a certain amount for particular expenditures without obtaining authorization from owners in a general meeting.
In conclusion, trustees in South African sectional title schemes are the linchpins of effective governance and management. They represent the Body Corporate and carry out its functions and powers within the boundaries set by the law, the Body Corporate's rules, and owner directives. This collaborative approach ensures that the interests of all owners are considered, promoting transparency and accountability within the scheme. It's essential for trustees to be aware of their duties and to work diligently to maintain the well-being of the sectional title scheme and its residents.
