Understanding the Role of a Trustee in a Body Corporate
If you live in a sectional title complex, the "Body Corporate" is the group that manages the building. The trustees are the team elected by residents to make the day-to-day decisions for that complex.
Being a trustee comes with specific rules on how meetings are run, how decisions are made, and how to stay legal.
Here is a breakdown of how it works.
1. Who is in charge? (The Chairperson)
- Initially: When a new complex is first built, the developer acts as the chairperson.
- After the first meeting: Once the residents hold their first general meeting and elect trustees, those trustees hold a vote among themselves to pick a chairperson. This person stays in charge until the next annual general meeting (AGM).
- Replacing the chair: If the other trustees aren't happy with the chairperson, they can vote to remove them, provided they give notice of this intention in the meeting agenda.
- Note: Being removed as "chair" doesn't mean they are no longer a trustee; it just means they are no longer in charge of the meetings.
- If a chair is absent or can’t run a meeting, the other trustees simply pick someone else to fill that role for that specific meeting.
2. How many people need to be at a meeting? (Quorum)
To make decisions, you need a "quorum"—which is the minimum number of people required for a meeting to be official.
- The Rule: Generally, you need at least 50% of the trustees present. (If there are only three trustees, at least two must be there).
- What if not enough people show up? If you don't have enough people within 30 minutes of the start time, you can still pass "provisional" decisions, but they must be confirmed later by a full quorum or by getting all trustees to sign off on them in writing.
- Emergency exception: If you don’t have a quorum, you can still meet for two specific purposes: to appoint new trustees to fill empty spots or to call a big meeting of all the residents.
3. How voting works
- Majority rules: Each trustee gets one vote. If the votes are split 50/50, the chairperson gets an extra "casting vote" to break the tie (unless there are only two trustees total).
- Conflict of interest: If a decision involves a contract or a dispute that personally affects you (or someone you are connected to), you are not allowed to vote on that specific issue. You must step aside to keep things fair.
4. Voting without meeting face-to-face ("Round Robin")
Trustees don't always have to sit in a room to vote. They can vote via "Round Robin" resolutions. This is where a document is sent to all trustees, and they sign it to indicate their agreement.
- Electronic Signatures: Thanks to the Electronic Communications and Transactions Act, you don't necessarily need a physical pen-and-paper signature.
- What is accepted? Printing, signing, and scanning is standard. Even simpler electronic methods (like digital signatures or clear email confirmation) are generally accepted as long as it is clear who is signing and that they are approving the document. You don't need a fancy, high-level certified digital signature for routine trustee work.
Being a trustee is about teamwork. Decisions must be transparent, conflicts of interest must be avoided, and even when you aren't meeting in person, your decisions need to be documented clearly so they are legally valid.
Author Source : Grant Hill - Miller Bosman Le Roux Attorneys