Can a Trustee do work / provide a service in his/her own complex.

If you look at the provisions in the STSM Act you have to look at Section 8 of the Act

Fiduciary position of trustees
8(1) Each trustee of a body corporate must stand in a fiduciary relationship to the body corporate.

(2) Without derogating from the generality of the expression “fiduciary relationship”, the provision of subsection (1) implies that a trustee—

(a) must in relation to the body corporate act honestly and in good faith, and in particular—

  • exercise his or her powers in terms of this Act in the interest and for the benefit of the body corporate; and
  • not act without or exceed those powers; and

(b) must avoid any material conflict between his or her own interests and those of the body corporate, and in particular—

  • not receive any personal economic benefit, direct or indirect, from the body corporate or from any other person; and
  • notify every other trustee of the nature and extent of any direct or indirect material interest which he or she may have in any contract of the body corporate, as soon as such trustee becomes aware of such interest. 

(3) A trustee of a body corporate who acts in breach of his or her fiduciary relationship, is liable to the body corporate for—

  • any loss suffered as a result thereof by the body corporate; or
  • any economic benefit received by the trustee by reason thereof. 

(4) Except as regards the duty referred to in subsection (2)(a)(i), any particular conduct of a trustee does not constitute a breach of a duty arising from his or her fiduciary relationship to the body corporate if such conduct was preceded or followed by the written approval of all the members of the body corporate where such members were or are cognisant of all the material facts.

In a nutshell.  If the Trustee wants to also be a service provider then he/she needs to decide:

  • Either he/she resigns from being a Trustee
  • Or they get written permission from all owners that he/she can remain to be a Trustee and also provide a service to the scheme

It is very important that the needs of the Body Corporate be set before the needs of the individual.

Should that person receive permission from the owners to provide a service to the scheme then you also need to look at the following portion of the STSM Act:

PMR 6

  • A trustee who has any direct or indirect personal interest in any matter to be considered by the trustees must not be present at or play any part in the consideration or decision of the matter concerned.

And

PMR 14

  • A trustee is disqualified from voting in respect of —
  • any proposed or current contract or dispute with the body corporate to which
    the trustee is a party; and
  • any other matter in which the trustee has any direct or indirect personal