The Trustees decided to terminate the contract with the Security company. A Trustee resolution was taken in this regard and the Managing Agent was instructed to notify the Security company of the termination of the contract. The Security company replied that it will not accept the termination as it was only signed by the Managing Agent.
Here we have to keep in mind PMR 10.
- (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.
The Managing Agent incorrectly read that as that you only need a Trustee resolution and then the Managing Agent can sign the termination letter. But if you read it carefully it does not say a Trustee resolution OR signed by two Trustees or one Trustee and the Managing Agent.
You have to have both the Trustee resolution and the two signatures