The Role of Trustees in a Sectional Title Estate
Category Residential Property
All owners of a unit (or section) within a Sectional Title scheme are members of the body corporate. The body corporate is responsible for the effective management of the estate, including the administration of common areas, the enforcement of rules, and the application of regulations. However, as you can imagine, managing the collective interests of many owners can lead to chaos without a clear structure for decision-making-especially when all actions must serve the best interests of the entire complex and its residents.
To streamline governance, the body corporate appoints trustees at its Annual General Meeting (AGM), where all owners are invited to attend, vote, and guide decisions. Trustees, usually residents themselves, are elected to manage the day-to-day affairs of the body corporate.
The role of trustees
Trustees typically perform their duties without remuneration, which can place a strain on those who volunteer, especially in larger estates where demands can be constant. These individuals often take on the role because they have a vested interest in the wellbeing and financial health of the estate-after all, it's their investment too. This role is often well-suited to retirees, pensioners, or those with flexible time.
The chairman
Among the elected trustees, a chairman must be appointed. The chairman is responsible for:
- Ensuring trustee and AGM meetings are held
- Keeping accurate minutes of meetings
- Overseeing the allocation and approval of expenses
- Casting a deciding vote in the event of a tie during trustee decision-making
- Leading strategic discussions
- Announcing outcomes of AGM votes
The chairman is a leadership figure who guides meetings and helps maintain order, efficiency, and clarity in the governance process.
Trustee portfolios
Trustees share a range of responsibilities, which may include:
- Ensuring owners pay levies that cover the complex's running costs
- Appointing a managing agent (if required)
- Ensuring levies are correctly allocated and managed
- Keeping budgets in check and maintaining insurance cover
- Enforcing the complex rules and proposing amendments for AGM approval
- Ensuring compliance with the Sectional Titles Schemes Management Act
- Managing and maintaining common areas, including cleaning, security, and repairs
- Handling complaints from owners and tenants
- Ensuring an annual audited financial statement is prepared and presented
Individual trustee portfolios
To improve efficiency, it's good practice to allocate specific portfolios to individual trustees. Common portfolio categories include:
- Secretarial - communications, website, and telecoms
- Security - access control, surveillance, etc
- Gardens and Landscaping - appearance and maintenance of common outdoor spaces
- Finance and Budgeting
- Governance - legal compliance, ethics, and policy
- Utilities - water, electricity, refuse, recycling, and sewage
- Maintenance - infrastructure, pools, boundary walls, painting, and other communal facilities
Number of trustees
According to the Sectional Titles Act, a body corporate must have a minimum of two trustees. Beyond that, there is no upper limit, meaning that in a small complex, all owners could technically serve as trustees. An odd number of trustees is generally preferred to prevent deadlocks in decision-making.
Communication
Effective communication between trustees and residents is vital. Most schemes use a community WhatsApp group or a digital platform for updates and alerts. These platforms must be well-managed, with clear rules in place to prevent spam, misinformation, or misuse.
Trustees must also ensure compliance with the Protection of Personal Information Act (POPIA), which requires residents to consent to receiving digital communications and having their personal information shared in group settings.
Final thought
Trustees are an essential part of any Sectional Title scheme. While they hold significant responsibility and decision-making power, their actions must always reflect the best interests of all members of the body corporate. Strong governance, transparency, and a collaborative spirit are key to maintaining a well-managed, harmonious community.
Author: Private Property
