Being a director of a Homeowners Association or a trustee of a Body Corporate or Voluntary Association carries with it important responsibilities, yet how many people volunteer for those positions fully comprehend the extent of what is expected of them?  Jeff Gilmour, President of the Association of Residential Communities (ARC) (above), describes why training is vital for both novice and existing community managers.

Gilmour comments:  “In many instances, new directors or trustees are thrust into an environment where they’re expected to meet high levels of governance and good practice, including sometimes onerous criteria related to their fiduciary responsibilities.

“In too many cases, more experienced board members and communities do not take cognisance of the fact that first-time volunteers are usually thrown in at the deep end and expected to ‘learn on the job’.”

It is common practice for property owners in the community scheme to be elected to the board or body corporate by other members via a nomination process.  “This means that they become directors or trustees often because of their willingness to serve, rather than their skills and knowledge in community leadership,” he notes.

“Despite their inexperience, however, they carry the same legal risks as members with long-term industry and legal knowledge, from day one.”

Meeting challenges with legal and fiduciary compliance

Gilmour points or out that fiduciary duties of directors and trustees can be daunting. “A fiduciary is obliged to act in the community’s best interests by meeting stringent and often complex legal standards.

“Their responsibilities are prescribed by the Companies Act and Sectional Titles Act, or by common law.  In fact, any staff member who implements decisions taken by the board carries an element of fiduciary duty.”

To meet these and many other challenges that members across all stages of their journey in HOAs and bodies corporate are likely to face, ARC offers an online induction programme that ensures community managers understand exactly what their commitments are.

The ARC Director and Trustee Induction Programme covers all aspects of good governance as it relates to the memorandum of incorporation, or constitution, rules and regulations and policies and procedures of the community.

“Carrying out your duties as a director, trustee or prescribed officer in relation to the requirements of governing documents is of paramount importance, and this is extensively covered,” says Gilmour.

The online learning program recently launched by ARC includes a self-learning component, as well as live online sessions where directors, trustees and prescribed officers can interact with the specialists who developed the programme, as well as participants from other communities on the same journey.

Online participation and discussions

The approach used to develop the online induction programme is a blended one, meaning structured digital input is provided in the form of recorded sessions, animated images, relevant documentation, links to extra resources, summaries, activities and quizzes. Then, live online discussions and Q&A sessions help consolidate the learning and application to your specific role on your estate or sectional title development.

As a leading resource for directors and trustees in our industry, ARC continually strives to improve access to information for leaders and management of residential communities. By providing online learning opportunities, participants can work at their own pace and stay abreast of legal and best practice issues on their journey.

“With ARC, it’s not just about the service you give willingly to your community to maintain the property’s value and enhance resident’s lifestyles, it’s about enabling you to constantly improve your knowledge and lead your team effectively,” he concludes.

About ARC

The Association of Residential Communities (ARC) was established in 2008 to proactively support the volunteers/members of Homeowners Associations (HOAs) and Bodies Corporate, and their management teams to establish, maintain and enhance the value of the properties as well as the lifestyles of their residents. Key to this is ARC blended Online Learning which ensures Directors and Trustees across the industry are kept current with laws, good governance practise and access to industry expertise.

For more information, please visit https://hoasupport.co.za

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