Trustee resolution in writing

What decisions by trustees needs an actual physical resolution be signed (only referring to trustee resolutions)

Some of the decisions trustees make must be made by written resolution and not just included in the minutes of a Trustee meeting:

  • setting the dates for future trustee meetings with a standard agenda – PMR 11(2)
  • confirming a resolution taken at a trustee meeting where there was no quorum – PMR 13(4)
  • raising a special contribution – PMR 21(3)(a)
  • increase the contribution by up to 10% for the period between the end of the financial year and when the new contribution becomes payable – PMR 21(3)(b)
  • charging interest on overdue amounts – PMR 21(3)(c)
  • investing reserve fund money – PMR 21(3)(d)
  • entering into contracts – PMR 21(3)(e)
  • joining organisations and subscribing to services – PMR 21(3)(f)
  • delegating trustee duties – PMR 21(3)(g)
  • approaching the Ombud for relief – PMR 21(3)(h)


Added to this we have the interest; handover and levy resolutions that the Act does not specifically prescribe to be written resolutions but this is what the courts require when a unit is handed over for collection of arrear levies.


Quote from the STSM Act:
PMR 11(2) The trustees may by written resolution set the dates of and a standard agenda for their future meetings and delivery of a copy of this resolution is considered adequate notice of all such future meetings.

Quote from the STSM Act:
PMR 13

  • If at any trustee meeting a quorum is not present within 30 minutes of the appointed time for the meeting, the trustees present, but not less than two, must adopt interim resolutions in respect of each item on the agenda.
  • An interim resolution adopted by trustees in terms of sub-rule (3) does not take effect unless it is confirmed—
  • at the next trustee meeting at which a quorum is present; or
  • by written resolution signed by all the trustees. 

Quote from the STSM Act:
PMR 21
(3)  The body corporate may, on the authority of a written trustee resolution—

  • levy members with a special contribution if additional income is required to meet a necessary expense that cannot reasonably be delayed until provided for in the budget for the next financial year;
  • increase the contributions due by the members by a maximum of 10 per cent at the end of a financial year to take account of the anticipated increased liabilities of the body corporate, which increase will remain effective until members receive notice of the contributions due by them for the next financial year; provided that the trustees must give members notice of such increased contributions by notice in terms of rule 25, with such changes as are required by the context;
  • charge interest on any overdue amount payable by an member to the body
    corporate; provided that the interest rate must not exceed the maximum rate of interest payable per annum under the National Credit Act (2005) Act No 34 of 2005) , compounded monthly in arrear;
  • invest any moneys in the reserve fund referred to in sections 3(1)(b) of the Act in a secure investment with any institution referred to in the definition of “financial institution” in section 1 of the Financial Services Board Act, 1990 (Act No. 97 of 1990); amended –
  • enter into written and signed contracts in respect of its powers and duties under the Act and these rules;

(f)  join organisations and subscribe to services to further its purposes under the Act and these rules;

(g) delegate to one or more of the trustees, to a member, agent or an employee such of their powers and duties as they deem fit, and at any time to revoke such delegation; provided that when they delegate any power or duty they must specify in writing‑

  • the power or duty concerned;
  • a maximum amount of the body corporate’s funds that may be spent for a particular purpose; and
  • any conditions that may be applicable; and

(h) approach the Community Scheme Ombud Service for relief.