We have nobody willing to be a Trustee, so we are looking into appointing an Executive Managing Agent (EMA). Some people say that the EMA and the Managing Agent cannot be the same company? Is this true?
If you read the STSM Act it stipulates that an EMA can be appointed by special resolution of the Body Corporate. There is nothing in the STSM Act that stipulates that the EMA and the Managing Agent cannot be from the same company.
At Trafalgar dedicated people perform the EMA function and then work with whoever the Managing Agent team is – be it a Trafalgar team or another Managing Agent. Some people believe that it is a conflict of interest, but we do not as the EMA still reports to the owners – nobody is above the law! And having an EMA instead of several Trustees that cannot be bothered to respond to emails or phone calls make life easier for the Managing Agent as well. We also believe in having Owner committees for interested parties – that is not as labour intensive as being a Trustee but still serves to promote owner involvement in the decision-making process by the EMA.
Quote from the STSM Act
PMR 28. (1) The body corporate may, by special resolution, appoint an executive managing agent to perform the functions and exercise the powers that would otherwise be performed and exercised by the trustees.