Property Management, Property Rentals and Property Financial Services in South Africa

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Directions and restrictions to the Trustees

At every Annual General Meeting there is an agenda item “Directions and Restrictions to the Trustees”. By this the General Meeting is instructing the Trustees to do or not to do certain things during the period until the next Annual General Meeting.

An example of a restriction will be that the Trustees would not be allowed to spend more than a specified amount on a project before they call a Special General Meeting and consult the owners in this manner.

An example of a direction will be that the Trustees are requested to investigate the implications of appointing a Caretaker and then call a Special General Meeting to consult owners in this matter.

The right of owners to direct and or restrict the Trustees is a very important one.

It is important though that they be very clear on the restriction and the wording in the minutes are very important to avoid future arguments about what exactly was decided at the meeting.

It is to be noted that directions and restrictions are only valid from AGM to AGM, they do not automatically continue to be in place indefinitely

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