Trustees voting deadlock
Your expert advice will be appreciated.
A1: The situation you describe is a deadlock in the voting of the trustees. In terms of prescribed management rule 18 the chairperson has a casting vote when there is a deadlock in the voting of trustees. So in this situation once every trustee has voted, including the chairperson, and there are three votes for painting the gutters and garage doors green and three votes for painting the gutters and garage doors blue – the chairperson is able to vote again thereby breaking the deadlock.
However, the chairperson has a duty to remain neutral and therefore his/her casting vote should not be used to change the existing situation. The fact that the trustees, including the chairperson are equally divided on this issue indicates that there is, without the casting vote, not enough support for the proposition that the existing situation should be changed.
Therefore the chairperson’s casting vote should be used to maintain the exiting position. This is in line with your suggestion that the current paint colour should be used again.
Two too many trustees?
Q2: Hi Jennifer. I would like to know if two persons living in the same unit are allowed to act as trustees of the body corporate.
A2: In terms of prescribed management rule 5 a trustee is not required to be an owner of a unit in the scheme provided that the majority of trustees are owners or spouses of owners and that the managing agent or any of his/her employees or an employee of the body corporate may not be a trustee unless s/he is also an owner.
In light of the above there is no restriction disallowing two persons living in the same section from acting as trustees of the body corporate provided that the majority of trustees are owners or spouses of owners and that either of these two people are not the scheme’s managing agent or one of his/her employees or an employee of the body corporate. However even if one or both of these people was the scheme’s managing agent or his/her employee or an employee of the body corporate, s/he would be able to act as a trustee if s/he was also the owner of a unit in the scheme.
Q3: For a new development, how soon after registration does the first AGM need to be held?
A3: We refer to the first meeting of the body corporate as the ‘inaugural’ general meeting of the body corporate. In terms of prescribed management rule 50 the inaugural general meeting of the body corporate must be held within sixty days of the establishment of the body corporate. In terms of section 36(1) of the Sectional Titles Act 95 of 1986, the body corporate is established on the date that any person other than the developer becomes an owner of a unit in a scheme. Therefore the inaugural meeting must be held within sixty days of a person other than the developer becoming an owner in the scheme.
Article reference: Volume 3, Issue 09, Page 5.
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