We as Managing Agents sometimes get instructions from only the Chairperson or 1 Trustee is this valid? What should we do in such a case?
Let us look at what the STSM Act states about this
Section 7
(1) The functions and powers of the body corporate must, subject to the provisions of this Act, the rules and any restriction imposed or direction given at a general meeting of the owners of sections, be performed and exercised by the trustees of the body corporate holding office in terms of the rules.
The STSM Act further states that there are two ways in which Trustees can make decisions:
- At a Trustee meeting
- On a round robin basis
PMR 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.
Nowhere in the Act does it state that any Trustee – even the Chairperson – can make decisions on their own.
When we therefore – as Managing Agents – receive an instruction from only 1 Trustee we must doublecheck and ask for either the minutes of the meeting where it was decided or the written and signed Trustee resolution.