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Tenure of trustees?
Our trustees refused to hold an AGM during 2009. The last AGM was during September 2008. How long do they continue to be trustees? I know the Sect Title Act specifies that they are in office until the next AGM, but what happens in this case? If we again don't have an AGM, will they then be in office for 3 years running? Please help, as they act as if they are above the law and continue to make decisions and spend our money. Owners are completely ignored, and even insulted if they ask questions.
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RE: Tenure of trustees?
PMR 51 (1) states that an AGM must be held within four months of the end of the financial year. Unless decided otherwise at a general meeting, the financial year will run from 1st March to end of February.
There is also an obligation for the trustees to present annual estimates of expenses, insurance values as well as presenting audited financial statments to the body corporate (owners)....Show More
Owners (the Body Corporate), representing 25% of the total of the quotas of all sections are entitled to request , in writing, that the trustees convene a special general meeting. If they do not convene the SGM within 14 days the owners are entitled to convene the meeting themselves.
RE: Tenure of trustees?
Hi
Unfortunately you have to live with them until new trustees are elected at either an AGM OR a special general meeting. Such a SGM may be requested by owners holding 25% of the PQ values of the scheme (PMR 53). The intention of the meeting should be noted in the request and if the trustees do not comply within 14 days the owners may go ahead and convene the meeting themselves.
The AGM has to be held within 4 months of the financial year end (PMR 51 (1)) but currently there are no sanctions/penalties which can be imposed if this is not adhered to, apart from the provisions of PMR 53. ...Show More
Hopefully once the Ombudsman is in place trustees like you have described will have their wings clipped.
Something else to be aware of that during this time when no AGM's are held there will be no approved estimates from which to determine new contributions therefore maintenance will suffer. The only increase there could be is the 10% i.t.o. PMR 31 (4A).
The references to the Rules can be found in the Library section.
RE: Tenure of trustees?
Regarding your election as a trustee:
A person can only be removed as a duly elected trustee by the procedure covered in PMR 13
...
(e) if by resolution of a general meeting of the body corporate, he is removed from his office,
provided that the intention to vote upon the removal from office has been specified in the
notice convening the meeting.
When notifying your request for a SGM supported by owners holding 25% of the PQ values of the scheme (PMR 53) you will then refer to your right in terms of PMR 13 and the reason that the present trustees neglected their duties, (you may cite several).
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