Being a trustee without being a member of the body corporate

15 October 2021 | Lamees Finch

Did you know that you can be nominated and elected as a trustee of a body corporate without being an owner of a unit within, and member of, a body corporate? Well, you can! In terms of Prescribed Management Rule (“PMR”) 6 of Annexure 1 of the Regulations to the Sectional Titles Schemes Management Act 8 of 2011 (“the STSMA”), a trustee need not be a member, or the legally recognised representative of a member who is a juristic person. This means that if the unit is registered in the name of someone else, you, as a non-owner, may be a trustee of that body corporate.

You will need an owner, as a member of the body corporate, to nominate you for the office of trustee, as per PMR 7, and the nomination must be provided in writing, and be accompanied by your written consent as the person being nominated. Once completed, this nomination must be delivered to the body corporate’s service address at least 48 hours before a general meeting is due to commence. Note this deadline, as there is no scope for “late” submission as there are with proxy forms. However, if there are insufficient nominations prior to the general meeting, nominations can be made and accepted from the floor during the course of the general meeting.

The developer or the members of the body corporate may amend the management rules of the body corporate to only members to be trustees. However, keep in mind that should this be done, it may limit or prevent available candidates. We often find that there is member apprehension to being a trustee, which is often linked to a scheme-related difficulty. Therefore, in the writer’s opinion, isolating trusteeship to members only, could have a negative result for the holistic management of the scheme.

 A question could be raised as to why a non-owner would want to be a trustee. There could be many reasons, but the most understandable reason is that the individual has a vested interest in the management of the scheme. Perhaps a son or daughter looking after their parents’ asset; a wife helping her husband manage their growing property portfolio; or parents building a property asset future for their children. There are multiple scenarios one could find.

We are often asked if a trustee needs to have specific qualifications. Neither the STSMA nor its Regulations provides a list of qualifications that one must meet in order to be a trustee, as is evident from the above mentioned. If anything, and probably most importantly, is having a basic understanding of community schemes and the legislation in which it operates. Once you have this understanding, you’ll find that your degree in accounting, your MBA in business management, your diploma in project management, or your trade certificate in plumbing, would come in handy.

Being a trustee is more than just making sure that the intercom system is working. Having a knowledgeable board of trustees, who can oversee different portfolios such as finance, maintenance, security, staff, and importantly, owner communication, goes hand in hand with a good managing agent, to make for a well-run scheme.  

Should you have any questions on the above, or would like arrange a consultation regarding the above, please contact us on info@tvdmconsultants.com or 061 536 3138.