Trustees and the Body Corporate
Many have thought they are the “local policing forum of the scheme”. Others think that the Trustees are merely appointed to discipline occupants of a scheme ensuring that the house rules are correctly followed. In short, Trustees of a Sectional Title Scheme are those persons appointed by the owners of the scheme to look after the finances and the running of the Body Corporate.
When chatting to Trustees, you will most certainly hear that being a trustee of a sectional title scheme is the most unwanted, unworthy and unappreciated job that there ever could be and usually, no compensation is received for all your efforts.
Why should a sectional title scheme appoint trustees?
Each and every Body Corporate has certain financial responsibilities, which would include the payment of the rates and taxes bill, Insurance premiums, maintenance expenses and so forth. These expenses need to be regulated and collected from the individual owners of the units and the payment of the expense bill ensured. Thus, the Scheme appoints Trustees to ensure that the management, administration and controlling of the scheme is done to the benefit of all owners of the scheme and all the financial obligations are met.
Who can be appointed as a Trustee?
- You do not have to be a owner of a unit in a scheme to be appointed as a Trustee, however, the majority of Trustees of a Scheme must be owners or spouses of owners in the scheme.
How many Trustees should there be in a Sectional Title Scheme?
- All owners of a Sectional Title Scheme are Trustees of a newly established Body Corporate, with the developer of the scheme being the chairman, until such time as the inaugural meeting is held by the Body Corporate.
- The Sectional Titles Act states that there should always be a minimum of two (2) trustees in any Sectional Title Scheme.
- The Act however, does not limit the amount of trustees that can be elected, therefore, it is possible that ALL owners of a scheme can be trustees as well.
How long do Trustees serve as Trustees?
- A Trustee will hold office from election at one Annual General Meeting until the next Annual General Meeting or until he resigns as trustee or until he is removed from office by the owners at a special general meeting.
I’ll sign off this week with a citation from a British judge in a famous fraud case: “Those who are ignorant will never know that they are being abused”.
[Recognition to Ashleigh from Omni Estates]