By the Paddocks Club team

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

Owner/Trustee/Caretaker remuneration

Member’s question:

Good day Paddocks,

An Owner that is part of the Trustee committee and also elected as a Caretaker that receives a remuneration from the Body Corporate.

1. Can such person (owner, trustee & caretaker) in his capacity as a Caretaker received a remuneration?
2. If so, how must such appointment be done?
3. May this person be all 3 of the mentioned titles (owner, whom is a trustee, whom also is a caretaker)?

Thank you!

Anton’s answer:

Hi there,

This is quite a common question. It’s technically ok but there are difficulties that make this situation uncomfortable; we recommend avoiding the situation because of the potential for other owners to see a conflict of interest.

PMR 6(2) says an employee of the body corporate cannot be a trustee unless that person is an owner in the scheme.
PMR 6(3) says a trustee cannot take any part in a trustee decision in which he or she has a personal interest.
PMR 8(2) says owner trustees may not be paid for their services as a trustee without the authority of a special resolution.
PMR 21(3)(e) requires employees of the body corporate to be appointed in terms of a written contract.

Two problems:

1. The duties of a caretaker can be seen as duties of the trustees.

2. One can’t be the employee and the boss at the same time.

Real right to extend

Member’s question:

Good day,

If a developer has a real right to extend, how do one deal with his liability to pay levies since you can not use PQ values?

Anton’s answer:

Hi there,

Section 3(1)(d) requires the body corporate to require the developer to make contributions to defray the body corporate’s costs with respect to the part/s of the common property subject to the reserved rights.

So the developer must just cover the body corporate’s costs for the area.

Article reference: Paddocks Press: Volume 13, Issue 8.

Professor Graham Paddock, Anton Kelly, Zerlinda van der Merwe and Ané de Klerk 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 – August 2018 Edition.