One of our Trustees never attends Trustee meetings. Can we say that you are disqualified from being a Trustee if you don’t attend the meetings?
If we look at the STSM Act to see when someone is disqualified from being a Trustee, we see this in the Prescribed Management Rules (PMR)
PMR 6
4.A trustee ceases to hold office if that trustee—
- by written notice to the body corporate, resigns from office; same
- is declared by a court to be of unsound mind; same; but declared by court is new
- is or becomes insolvent and the insolvency results in the sequestration of that trustee’s estate; same
- is convicted, or has been convicted in the Republic or elsewhere, of theft, fraud, forgery, perjury or any other offence involving dishonesty; amended to include the yellow part
- is sentenced to imprisonment without the option of a fine; new
- is removed from an office of trust on account of misconduct in respect of fraud or the misappropriation of money; new
- is removed from office by ordinary resolution of a general meeting; provided the intention to vote on the proposed removal was specified in the notice convening the meeting; same
- is or becomes disqualified to hold office as a director of a company in terms of the Companies Act, 2008 (Act No. 71 of 2008); or – same
- (i) fails or refuses to pay the body corporate any amount due by that trustee after a court or adjudicator has given a judgment or order for payment of that amount. (No longer 60 days thing)
If they want to add something like you being removed if you don’t attend Trustee meetings, they will either have to amend this PMR (unanimous resolution) or have it as a direction/restriction to the Trustees – to be repeated at every AGM as it does not carry over automatically.