We have sent an AGM notice out to all owners but one of the owners came back to us to state that the Trustee report is invalid because it was only signed by the Chairperson. He stated that all BC documents must be signed by at least two Trustees. What does the Act say in this regard?
We have to look at the history here.
In the ST Act the PMRs stated the following:
PMR 38. The trustees shall further cause to be prepared and shall lay before every annual general meeting a report signed by the chairman reviewing the affairs of the body corporate during the past year, for consideration in terms of rule 56 (a).
This was however amended in Oct 2016 when the STSM Act came into being:
- A body corporate must—
(f) prepare a report adopted by the trustees reviewing the affairs of the body corporate during the financial year for presentation at the annual general meeting.
So first of all the shift moves to it being a report by the Trustees, and definitely not just a Chairman’s report.
And then we have to look at PMR 10 regarding the validity of BC documents:
- (1) No document signed on behalf of the body corporate is valid and binding unless it is signed on the authority of a trustee resolution by —
- two trustees or the managing agent, in the case of a clearance certificate issued by the body corporate in terms of section 1 5B(3)(0(aa) of the Sectional Titles Act; and
- two trustees or one trustee and the managing agent, in the case of any other document.
So following this we must ensure that all Trustee reports that we send with AGM notices are signed by at least two Trustees.