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Trustee Responsibilities and Rights: Understanding the Role and Expectations

As a vital component of sectional title schemes, trustees play a crucial role in managing the day-to-day affairs of the complex. However, with great power comes great responsibility. In this article, we’ll delve into trustee behaviors and training, their rights, and the unique considerations that arise when a trustee is also a resident in the same complex.

Trustee Responsibilities

Trustees are appointed to manage the scheme’s business, make decisions, and ensure compliance with the Sectional Titles Schemes Management Act (STSMA) and the scheme’s rules. Their key responsibilities include:

  1. Financial management: Overseeing the scheme’s finances, including budgeting, invoicing, and payment of expenses.
  2. Maintenance and repairs: Ensuring the scheme’s common property is properly maintained and repaired.
  3. Compliance: Enforcing the scheme’s rules and ensuring compliance with the STSMA.
  4. Dispute resolution: Resolving disputes between residents, owners, and the body corporate.

Trustee Behaviors and Training

To effectively fulfill their responsibilities, trustees should:

  1. Act with integrity: Make decisions in the best interest of the scheme, without bias or personal agendas.
  2. Be transparent: Keep residents and owners informed about scheme decisions, finances, and maintenance.
  3. Communicate effectively: Listen to concerns, respond promptly, and provide clear explanations.
  4. Stay informed: Attend training sessions, workshops, and seminars to stay up-to-date on sectional title legislation and best practices.

Trustee Rights

Trustees have the right to:

  1. Access scheme documents: Review and access scheme documents, including financial records and meeting minutes.
  2. Make decisions: Make decisions on behalf of the body corporate, within the scope of their authority.
  3. Seek professional advice: Consult with professionals, such as lawyers or accountants, when necessary.
  4. Indemnity: Be indemnified by the body corporate for any costs or expenses incurred while performing their duties.

When a Trustee is also a Resident

When a trustee is also a resident in the same complex, unique considerations arise:

  1. Conflict of interest: Trustees must avoid conflicts of interest and make decisions that benefit the scheme as a whole, rather than their personal interests.
  2. Rules apply equally: Trustees who are also residents must comply with the same rules and regulations as other residents.
  3. No special treatment: Trustees should not receive special treatment or privileges due to their position.
  4. Transparency: Trustees who are also residents must be transparent about their decisions and actions, to avoid any perception of bias or favoritism.

Trustees play a vital role in managing sectional title schemes. By understanding their responsibilities, behaviors, and rights, trustees can effectively serve the scheme and its residents. When a trustee is also a resident, it’s essential to maintain transparency, avoid conflicts of interest, and ensure that rules apply equally to all.

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