Can trustees exceed the body corporate's powers?
We’re currently teaching the Advanced Sectional Title Financial Management Masterclass and are having a great time discussing some of the harder aspects and gray-areas with our 33 students. Here’s a short excerpt from a video included in Module 1:
Paddocks Club Q&A
Each day we answer many questions on Paddocks Club and have included a few examples below that you may find helpful. Paddocks Club continues to be the most affordable way to get quick (24hr turnaround) advice from legal experts on sectional title issues and we encourage you to join here.
Question:
PMR 12(3) requires the newly elected trustees to elect among themselves a chairperson.
How can one resolve the issue, if none of them want to and are adamant not to be the chairperson.
They are extremely willing and competent to manage individual portfolios.
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Answer:
In a situation where none of the newly elected trustees are willing to take on the role of chairperson, it is important to find a resolution that ensures the effective management of the sectional title scheme. Here are some suggestions to resolve the issue:
If this has not happened already, encourage open discussion to make sure you understand trustees’ reasons for avoiding the office of chairperson. This may help identify any misconceptions or barriers that can be addressed.
Consider the possibility that the role could be shared to reduce the burden on individuals, e.g. each trustee or some of them takes on the role for a limited period before passing it on to another trustee.
If the first two options are not helpful, the trustees must seek external assistance. They should consider hiring a competent and independent individual experienced in sectional title management (for example the chairperson of another similar scheme in your area) to provide guidance and support on the basis that their only role is preparing for and chairing meetings. However, if the person requires payment, the scheme administrative fund budget will need to cover this expense.
If all else fails, it may be necessary to revisit the nomination and election process for trustees, seeking fresh candidates (from inside or outside the scheme) who are willing to take on the role of chairperson on terms they consider acceptable.
Good luck.
Question:
How should we handle the voting procedure for appointing trustees at the AGM when the meeting has decided to have 3 trustees but there are 5 nominations?
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Answer:
When there are more nominations than available trustee positions, the voting process should be conducted in a fair and transparent manner. Here’s a suggested approach for conducting the voting when there are 5 nominations for 3 trustee positions:
1. Prepare ballot papers: Create ballot papers listing all 5 nominees. Ensure that each ballot paper is identical and contains clear instructions on how to cast a vote.
2. Distribute ballot papers: At the AGM distribute one ballot paper to each owner or their proxy who is eligible to vote.
3. Cast votes: Instruct the eligible voters to mark their choices for the 3 trustee positions by selecting up to 3 nominees on the ballot paper.
4. Collect and count votes: Designate a neutral person to collect the completed ballot papers and count the votes.
5. Announce results: Once the votes have been counted, announce the results at the meeting. The 3 nominees with the highest number of votes will be elected as trustees.
I hope that helps.
How to handle nuisance
Our new CSOS Casebook: Orders dealing with nuisance has just been released. This eBook is a set of commentaries, guidelines and suggestions by Prof. CG van der Merwe and Prof. Paddock on CSOS Adjudication orders on this complicated and nuanced subject.
If you’re considering making an application to CSOS regarding a nuisance issue from a fellow resident, this easy to follow and affordable eBook will provide helpful guidance on how to best position your argument to win your case: Download eBook
If you have an issue you would like us to asssist you with, please get in touch.
Email: info@paddocks.co.za
Website: www.paddocks.co.za
