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Trustees doing nothing

By nico nico on Fri, 03 Sep 2010 at 14:43

Hi
Two questions
1) Can trustee’ hand the running of a complex over to the MA and do nothing.
2) The MA recently sent out a letter out that the trustee’s must only be “disturb” in an “emergency”. Not specifying the emergency/s
What is you opinion on this?

Thanks
Nico

Replies

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RE: Trustee's

Anne Greening replied on Fri, 03 Sep 2010 at 15:35

Hi, Nico. They are abdicating their responsibilities. Certainly the Trustees can delegates duties specified in his contract to the MA, but they cannot delegate their responsibility for ensuring the these duties are carried out; and for carrying out their legal responsibilities under the ST Act and Rules.
It is fair enough to ask residents not to contact trustees between (say) 6 p.m and 7.a.m except in an emergency. But I think it is counter-productive for trustees to be unwilling to be contacted during daytime. In accepting nomination as a Trustee, surely one should also ne willing to accept that people will have questions or grumbles that should be dealt with (courteously!) face-to-face.

RE: RE: Trustee's

John Yates replied on Fri, 03 Sep 2010 at 16:09

Well said Anne. I agree totally with your views.

RE: RE: RE: Trustee's

Gerhard Bezuidenhout replied on Fri, 03 Sep 2010 at 17:32

Agreed - to add 1c worth: from a practical point of view, the MA will not be able to address in-house matters effectively on a day to day basis, especially if you have a large BC. There is, however nothing that limits the delegation of routine responsibilities to the MA.

You could formulate an instruction under section 39(1) of the S T Act to be tabled at your next AGM, thereby limiting the extent of handing the "running of the complex over to the MA"....Show More

RE: RE: RE: RE: Trustee's

John Yates replied on Sat, 04 Sep 2010 at 08:21

Your use of the word "responsibilities" is not correct. The Trustees may delegate a function to the managing Agent but not a responsibility. This is a fundamental management concept that once a function is delegated the delegating person remains responsible to see that the function is carried out correctly.

RE: RE: RE: RE: RE: Trustee's

Gerhard Bezuidenhout replied on Mon, 06 Sep 2010 at 10:56

Noted, thanks.

RE: Trustee's

Julie Steffers replied on Sat, 04 Sep 2010 at 20:10

Hi Nico. A trustee may be sued for gross negligence. Please read Section 40 of the STA which deals with the Fiduciary position of the trustees especially Section 40(3)(a). I hope they know this.

RE: RE: Trustee\'s

John Yates replied on Mon, 06 Sep 2010 at 10:39

Unfortunately the S/T Act does not help in the matter of determining whether or not a Trustee/Trustees were grossly negligent.In my view this is very difficult to determine and the liability for any loss to the Body Corporate as a result of the Trustees Actions would also form part of the determination.

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