Executive Managing Agent

Sectional Title Schemes Management Act – Annexure 1 Prescribed Management Rules:

• 28. (1) The body corporate may, by special resolution, appoint an executive managing agent to perform the functions and exercise the powers that would otherwise be performed and exercised by the trustees.
• (2) Members entitled to 25 per cent of the total quotas of all sections may apply to the Community Scheme Ombud Service for the appointment of an executive managing agent.
• (3) An executive managing agent —
  • (a) is subject to all the duties and obligations of a trustee under the Act and the rules of the scheme;
  • (b) is obliged to manage the scheme with the required professional level of skill and care;
  • (c) is liable for any loss suffered by the body corporate as a result of not applying such skill and care;
  • (d) has a fiduciary obligation to every member of the body corporate;
  • (e) must arrange for the inspection of the common property at least every six months; and
  • (f) must report at least every four months to every member of the body corporate on the administration of the scheme.
• (4) The reports of an executive managing agent referred to in sub-rule (3)(0 must include at least the following details —
  • (a) proposed repairs to and maintenance of the common property and assets of the body corporate within the next four months;
  • (b) matters the executive managing agent considers relevant to the condition of the common property and the assets of the body corporate;
  • (c) the balance of each of the administrative and reserve funds of the body corporate on the date of the report and a reconciliation statement for each fund; and
  • (d) for the period since the appointment of the executive managing agent or from the date of the last report —
    • (1) the expenses of the body corporate, including repair, maintenance and replacement costs; and
    • (2) a brief description of the date and nature of all decisions made by the executive managing agent.

For any questions or a quotation for an Executive Managing Agent for your body corporate, please contact Andrew Schaefer on andrews@trafalgar.co.za or 083 399 9907.