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Chairpersons Rights

By Adriana Venter on Thu, 11 Oct 2018 at 12:38

Can a Chairperson appoint a Caretaker who has a dispute with the Body Corporate and do this by just informing the other Trustees?


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RE: Chairpersons Rights

Frances Paton replied on Thu, 11 Oct 2018 at 18:42

No. The only things that set a chairperson apart from, the other trustees is that the chairperson chairs trustee and general meetings, and has a casting vote in trustee meetings in the event of a tied vote. All decisions, including the appointment of body corporate employees, must be taken by a majority of the trustees and recorded in a trustee resolution. The chairperson, like all trustees, has a fiduciary duty to the body corporate to act in good faith at all times. Section 8 (2) of the STSMA specifically prohibits a trustee from exceeding his or her powers.
(A trustee—
(a) must in relation to the body corporate act honestly and in good faith, and in particular—
(i) exercise his or her powers in terms of this Act in the interest and for the benefit of the body corporate; and
(ii) not act without or exceed those powers)

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