17 March 2017

Electing Trustees

I found this post by Psychsoma informative and think that owners need to know exactly what process are in place regarding the election of trustees.

Nomination, election and replacement of the Trustees of a Body Corporate

The prescribed Management Rules, Annexure 1 to the Regulations of the Sectional Titles Schemes Management Act (No 8 of 2011), Rule 7 deals with the nomination, election and replacement of Trustees.
A member”, of the body corporate—namely an owner of a section within the scheme—“may nominate any person for the office of trustee” [PMR 7(1)]. “Such a nomination must be in writing, accompanied by the written consent of the person nominated” [PMR 7(2)]. Nominations are, as per PMR7(4) subjected to election at the annual general meetings (AGMs) of the body corporate[PMR 7(4)].
If a “trustee ceases to hold office”, then a vacancy in the number of trustees occurs—PMR 17(5)(j)(vii) specifies that the number of trustees to be elected to serve is determined at the AGM. In such a case, either the remaining trustees [PMR 7(5)(a) & 13(2)]; or the members in general meeting [PMR 7(5)(b)], may appoint a replacement trustee.
However, with regard to PMR 7(5)(a), there are a number of important conditions:
  • PMR 9(a) specifies that the trustees must meet—however alternative ways are made provision for.
  • PMR 13(1) specifies a quorum of at least 50% by number, but not less than two, and PMR 13(2) specifies that “if the number of trustees falls below the number necessary to form a quorum, the remaining trustee [erroneously stated] or trustees may continue to act, but only to (a) appoint replacement trustees to make up a quorum; or (b) call a general meeting”.
  • However, PMR 14(1)(a) and 14(4) both specify that decisions by trustees are by majority vote, which means that a single remaining trustee cannot appoint replacement trustees by majority vote, unless multiple personalities of such a remaining trustee is legally recognised (ignore, it is not a serious statement). This means, that if for some reason only one person remain as trustee, then s/he cannot appoint replacement trustees, but is obliged to call for nominations from the members. Should the number of nominations exceed the number of vacancies, then obviously election is required. However, since the remaining person cannot take decisions, a general meeting is required to ratify the nomination of replacement trustees.
Replacements further apply, as per PMR 7(7), with regard to appointed of a person for a specific period to serve as a trustee, while a trustee is absent or otherwise unable to perform the duties of that office.
A person holding office as trustee, may be removed from office—as per PMR 6((4)(g)—“by ordinary resolution of a general meeting; provided the intention to vote on the proposed removal was specified in the notice convening the meeting”. Note that the trustees (or the members at a general meeting) may remove the chairperson from office, which does not automatically remove the person from office as trustee [Refer PMR 12(5)].
http://www.psychsoma.co.za/sectional_title_living/2016/11/nomination-election-and-replacement-of-the-trustees-of-a-body-corporate.html

No comments:

Post a Comment

The trustees of Rietvlei Park value your comments and welcome suggestions for your blog

Living In Rietvlei Park

Why living in a sectional title scheme is a great choice If you are one of the owners of our scheme, you have made a smart decision to inves...