Chairperson making decisions unilaterally

Our Chairperson runs the show at our community scheme. She makes decisions on the spot and does whatever she wants without consulting the owners or other Trustees. Surely this cannot be correct?

Short answer – No definitely not correct.

The STSM Act dictates what resolutions are needed to be passed in which instances.  There are Body Corporate resolutions (ordinary, special, and unanimous) and sometimes there are things that can be decided by a mere Trustee resolution (majority of the Trustees). 

Nowhere in the Act does it state that the Chairperson can make decisions on his/her own.

The STSM Act states the following in terms of Trustee decisions at a Trustee meeting:

PMR 14

14. (1) A motion at a trustee meeting —

(a) does not have to be seconded; and

(b) must be determined by resolution adopted by the majority of the trustees present and voting.

It is also possible to take a Trustee resolution on a round-robin basis

PMR 14

14 (4)      Trustees must adopt decisions by resolutions adopted by majority vote: Provided that resolutions may be put to the vote —

  • at trustee meetings; or
  • by a notice sent to each trustee which contains the text of any proposed resolutions and instructs the trustees to indicate their agreement to the resolution by their signature, which signatures must be received by the body corporate before expiry of the closing date specified in the notice.