What decisions must be taken by the Trustees of the Body Corporate?
Copied from the Stratafin Trustee training:
Decisions that can be taken by either the body corporate or the trustees
The following decisions can be taken by either the body corporate or the trustees:
- PMR 7(5): The appointment of a replacement trustee in circumstances where a trustee ceases to hold office.
- PMR 12(5): The removal of the chairperson from office.
- PMR 28(5): The appointment of a managing agent.
- PMR 28(8): The cancellation of the managing agent’s contract.
Decisions that must be taken by the trustees
The following decisions must be taken by the trustees by resolution:
- Section 3(2) of the STSM Act: The decision to raise the annual contribution.
- Section 3(3) of the STSM Act: The decision to raise a special contribution.
- section 7(2) of the STSM Act: The decision to consent for subdivision or consolidation of sections.
- Section 7(3) of the STSM Act: The decision to enter into agreements regarding boundaries of the common property in terms of the Land Survey Act.
- PMR 7(7): The decision to appoint a replacement trustee to serve while the trustee is unavailable.
- PMR 10(1): The decision to sign a document binding on the body corporate.
- PMR 11(2): The decision to set the dates for future trustee meetings with a standard agenda.
- PMR 11(3)(b): The decision to exclude non-trustee members and others entitled to attend trustee meetings from the meeting.
- PMR 11(5): The decision to hold a trustee meeting using electronic communication.
- PMR 12(3): The decision to elect the chairperson.
- PMRs 12(6) and (7): The decision to elect a replacement chairperson if the chairperson is removed from office, is not present, or is unwilling to chair the trustee meeting
- PMR 15(7)(a): The decision to call general meetings at short notice.
- PMR 17(4): The decision to call general meetings as they see fit.
- PMR 17(7): To determine the agenda of general meetings except meetings called on the request of members holding at least 25% of the vote.
- PMR 20(9)(a): The decision that a special resolution passed by members holding less than 50% of the vote value must be implemented immediately.
- PMR 21(3)(b): The decision to 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)(g): The decision delegate trustee duties.
- PMRs 24(4) and (5): The decision to pay money from the administrative and reserve funds.
- PMR 26(1): The decision to adopt a report for presentation at the AGM.
- Prescribed Conduct Rule (”PCR 1): The giving of consent to keep a pet.
- PCR 2: The decision to specify the type of refuse receptacle to be used and where it must be kept.
- PCR 3: The giving of consent to park a vehicle on common property.
- PCR 4(1): The giving of consent to a member making a small change to common property.
- PCR 4(2): The giving of approval of the appearance and materials of locking or safety devices attached to common property.
- PCR 5: The giving of consent to change made to the external appearance of a section or exclusive use area.
- PCR 5(2): The giving of consent to the erection of washing lines on common property, hanging washing in section or exclusive use area if visible.
- PCR 5(2)(c): The giving of consent to display of signs etc.
- PCR 6: The decision to store flammable materials.
Decisions that can be taken by the trustees in writing
The PMRs set out certain additional requirements for certain trustee resolutions. These trustee resolutions must be in writing before the trustees can vote to adopt the resolution. The reason for this additional requirement is purported to ensure that the terms of these resolutions are clearly set out before the trustees vote on them. These are the resolutions that must be in writing:
- PMR 11(2): The decision to set the dates for future trustee meetings with a standard agenda.
- PMR 21(3)(a): The decision to raise a special contribution.
- PMR 21(3)(b): The decision to 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)(c): The decision to charge interest on overdue amounts.
- PMR 21(3)(d): The decision to invest reserve fund money.
- PMR 21(3)(e): The decision to enter into contracts.
- PMR 21(3)(f): The decision to join organizations and subscribe to service.
- PMR 21(3)(g): The decision to delegate trustee duties.
- PMR 21(3)(h): The decision to approach the Ombud for relief.