Every owner automatically becomes a member of the Body Corporate when he/she takes transfer of a section in the scheme. The members in turn elect Trustees at every Annual General meeting. The Trustees administer the affairs of the Body Corporate.
At any stage the owners in a general meeting can direct the trustees to undertake a course of action or to abort or alter any course the trustees may have embarked on and to this extent it is worth noting that the trustees are the servants and not the masters of the Body Corporate. As to the nature of the limitations which owners can place on the functions or powers of trustees it is difficult, if not impossible to provide common examples. It will suffice to say that whilst the Body Corporate in a general meeting, can impose restrictions or limitations on the functions and powers of the trustees, such restrictions or limitations cannot be contrary to the provisions of the Act or the rules themselves.
The Companies Act does not apply to Sectional Title schemes. (This is also why it is not advisable to refer to the Trustees as a “Board of Trustees”)
Trustees / Directors responsibilities include but are not limited to the following:
- Overseeing of levy collections
- Enforcement of Rules
- Management of common property
Section 3 of the Sectional Title Schemes Management Act deals with the functions of a Body Corporate; Sections 4 and 5 deals with the powers of a Body Corporate and Section 7 explains that the functions and powers of the Body Corporate must be exercised by the Trustees.