Trustees (also referred to as ‘Scheme Executives’) have specific authority, general powers and duties in their acting on behalf of Bodies Corporates.
Trustees meetings need to be duly convened where Trustees decisions are correctly taken with required resolutions in order to act, and avoid the risk of any unduly decision made and action taken being null and void.
Trustees cannot act alone, and need to act in accordance with the applicable Acts and in line with approved budgets approved at the AGM and any limits placed on them by the members in the AGM.
General Powers and Duties of Trustees/Scheme Executives:
The trustees/scheme executives must—
(a) meet to carry out the body corporate’s
business, adjourn and otherwise regulate
their meetings as they think fit, subject to
the provisions of the Act, these rules and the
common law of meetings;
(b) exercise the body corporate’s powers
and functions assigned and delegated to
them in terms of section 7(1) of the Act in
accordance with resolutions taken at general
meetings and at meetings of trustees;
(c) apply the body corporate’s funds in
accordance with budgets approved by
members in general meeting;
(d) appoint any agent or employee in terms
of section 4(a) of the Act in terms of a duly
signed written contract; and
(e) compile minutes of each trustee and general
meeting in accordance with rule 27(2)(a)
and distribute these to the persons entitled
to notice of the meeting concerned as soon
as reasonably possible, but not later than 7
days after the date of the meeting.
A reminder that each Trustee of the Body Corporate stands in a fiduciary duty to the Body Corporate and must at all times exercise his or her powers for the interest of the benefit of the Body Corporate and may not exceed or act without such powers.
To promote good governance, Regulation 14 of the Community Schemes Ombud Service Regulations obligates a Scheme Executive to take reasonable steps to obtain sufficient information & advice about all matters to be decided upon. Most importantly, Scheme Executives must ensure compliance with the law.
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