By Marina Constas, Director, BBM Attorneys

Just as there are all sorts of resolutions to kick-start a year, including improving finances, health, relationships and skills, there is no reason why Trustees should not take the opportunity to review their roles and to make a few commitments for 2020. After all, in terms of Section 8 of the Sectional Titles Schemes Management Act, Trustees have a fiduciary duty towards the complex, a duty of care, skill and diligence which requires consideration and reflection.

Often, Trustees are overwhelmed by the task of being a Trustee once they find out exactly what they are faced with. The easiest way to eat the elephant bite-by-bite is to categorise the role and deal with each category systematically.

Take corporate governance for example. Start by ensuring that the Scheme is on the front foot. Prepare a checklist to determine firstly if the scheme is registered for the Community Schemes Ombud Service (CSOS). Is the monthly CSOS levy being billed to each owner and is payment of the levy being made timeously to the service?

Have a look at the rules of the scheme. Section 10(3) of the Act mentioned above clearly states that the rules must be reasonable and must apply consistently to all owners. My very strong view is that rules should be tailor-made for the scheme and should be amended intermittently to resonate with the organically changing needs of the scheme. If the Body Corporate does amend the rules, the amendments must be lodged with CSOS who will provide the complex with a compliance certificate for those rules. This compliance certificate is going to become increasingly important going forward.

Are you getting the message that you should open a file, either lever arch or digital to get things in order? The legislation is pretty clear about the administrative side of the Trustees’ duties. Part 6 of the Management Rules sets everything out:  An index should be prepared for Management and Conduct Rules, all records must be prepared and updated including minutes of meetings, lists of trustees, members and tenants and their details. The Sectional Plan of the scheme should be included in the file together with any awards made by the Courts or Ombud service, as well as insurance polices, and resolutions taken at meeting. These things should not be left to the Managing Agents – the Trustees must be in control of their documentation. Then there’s the written ten year Maintenance, Repair and Replacement Plan which should find its way into the file, and the details of the scheme’s Reserve Fund. Start with that. Just getting everything into one place will provide peace of mind.

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