By The Paddocks Club Team

Below are examples of two questions on the Paddocks Club discussion forum. We want to show you what is available to our Community members!

Non-executive trustees

Member’s question:

The previous chairman of a complex no longer lives in the complex, but wants to be an executive trustee.  Does he have the same voting power as the other trustees?

When the other trustees, who live in the complex make a decision, he often overrides their decision.

Please advise

Anton’s answer:

I am assuming this person was elected as a trustee at the last Annual General Meeting and subsequently elected chairperson by the new board.

He remains a trustee and chairperson even though he does not live in the scheme and even though he might have sold his unit.

The chairperson cannot over ride a duly taken trustee resolution. All trustee decisions must be taken by formal trustee resolution, either at a meeting or by round robin. Reversing the decision would require another trustee resolution.

Voting, holding proxies, and disqualification as trustee if in arrears

Member’s question:

One individual who owns 10 units, is a Trustee, and is up-to-date with levy payments for 8 of those units, but is in arrears with levies on the remaining 2 units, which has been the case for quite some time. The owner is trying to bring the arrear amount down, and in terms of prescribed management rule 13(e) is disqualified from being a trustee. The question has been raised that owing to the fact that this owner is up-to-date with 8 of the 10 Units, does the disqualification to be a Trustee still apply?

Prescribed management rule 64 also disallows this owner from voting, but again the question being asked is should the owner not be permitted to vote for the 8 Units that are up-to-date, but can’t vote on the 2 in arrears.

Traditionally this owner carries a large number of proxies at the annual general meeting. Is there any legal way the body corporate can restrict the carrying of proxies owing to the fact that the 2 Units are in arrears with levy payments?

Carryn’s answer:

This owner has a vote for each of the 8 units for which he is not in arrears. There is currently no legal way to limit the number of proxies he may carry.

Prescribed management rule 13(g) states that a trustee who is in arrears for more than 60 days with any levies and contributions payable by him in respect of his unit or exclusive use area (if any) and if he fails to bring such arrears up to date within 7 days of being notified in writing to do so.

Therefore the trustee must of been in arrears for more than 60 days and also must fail to bring the arrears up to date after receiving 7 days’ notice to do so to be disqualified from being a trustee.

Article reference: Paddocks Press: Volume 10, Issue 3, Page 6.

Professor Graham Paddock, Anton Kelly, Carryn Durham and Zerlinda van der Merwe are available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

Back to Paddocks Press – June 2015 Edition.

1 Comment.

  • Pieta Serfontein
    01/08/2019 16:31

    Hi, I have been looking at various responses to this matter. PMR 64 no longer applicable since the new Act and Regulations are in place.
    PMR7 now in place. Which “rule” now prevent someone in arrears to vote?
    Only PMR20(2) – but subject to a judgement or court order.
    Or am I wrong?