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Chairman material ?

By Chilo Ramsamy on Sun, 04 Mar 2012 at 15:15

Our building was previously managed by a property management company. Us, owners decided to save on costs and manage the building ourselves. I am an owner and served as Chairperson for about four years in the 2000s. I stepped down and another was elected to the position. I then served as Trustee for several years afterwards but had to remove myself last year from a very stressful situation. The New chair's style is dictatorial. This individual is also a tenant and not an owner. Unilateral decisions are made about spending funds. No banking records are available for perusal. Contracts for maintenance are awarded to the individual's family. Maintenance work is carried out on common property with no recorded contract. Body Corp Bank statements record payments made out in his favour. The list goes on. I want to know if this individual can be removed from the position.

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RE: Chairman material ?

Myburgh Brink replied on Sun, 04 Mar 2012 at 19:24

The chairman is elected by the trustees. So the trustees may also remove this person as chairman (PMR 18 and 19). If you also want to remove him as trustees then a SGM has to be convened and notice given of the intention to replace him (PMR 13 (e)).

All trustee decisions have to be by majority vote and no single trustee has the authority to act unilaterally. Form your post it would appear this person has contravened both the stipulations of §40 and PMR 23. If the BC has suffered any proven material/financial loss due to this person's actions, he could be held personally liable (§40 (3)). The question could however be asked, were the other trustees aware of this and if so what did they do?

RE: RE: Chairman material ?

Chilo Ramsamy replied on Mon, 05 Mar 2012 at 10:53

Thank you for responding.
The answer to your question is...yes the trustees are aware of these matters as I raised them at meetings. The other trustees are quite happy to go along with the status quo, despite my warning them that as a Body Corporate, we are responsible for the management of other people's funds and property. I must add that the Owners themself are also apathetic individuals. They rarely come to AGMs.
I did raise the matter about the chairs eligibility for the position after looking at the Sectional Title Act. He just responded that I elected him to the position. This is true. That was before I knew him well. I intend requesting copies of all the nomination forms from the time of his election to verify this matter. My guess is that he will not have them. He did not know where our Insurance Policy Document was last week !
The BC had to pay a large amount of money for unpaid taxes last year. We did not have our books audited for one year. Meetings were convened usually as a result of a reminder.
I fear I am facing a losing battle. And I have one of two choices : shut up or sell up and live elsewhere ?
Is there some kind of Ombudsman for Sectional Title Matters ?

RE: Chairman material ?

Myburgh Brink replied on Mon, 05 Mar 2012 at 12:24

Currently there is not an Ombud for ST but there will hopefully be one later in the year. The Community Schemes Ombud Service Act, 9/2011, has been signed into law but not yet come into effect as its regulations have not been finalised.

At the moment your only avenue is to declare a dispute i.t.o. PMR 71 and take it to arbitration. ...Show More

RE: RE: Chairman material ?

Chilo Ramsamy replied on Mon, 05 Mar 2012 at 12:50

Thank you for your suggestions and feedback.

Please explain this matter of declaring a dispute.I am afraid I am ignorant when it comes to these matters....Show More

RE: Chairman material ?

Myburgh Brink replied on Mon, 05 Mar 2012 at 13:06

Have look in Library section of this site and then go to "Options for Resolving Sectional Title Disputes"

RE: RE: Chairman material ?

Chilo Ramsamy replied on Mon, 05 Mar 2012 at 13:32

Thank you.
Will search this site

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