By Ané de Klerk
Passing trustee resolutions in writing
This week alone two separate clients voiced their concern over the fact that the trustees of their bodies corporate had not met (neither in person nor virtually) to pass particular trustee resolutions. This brought to light the fact that, while adopting trustee resolutions at a trustee meeting is certainly an option, some managing agents, trustees and owners of units in sectional title schemes may be unaware of the second manner in which such resolutions may be passed lawfully. With most trustees being volunteers with their own taxing schedules and demanding careers, it is important to raise awareness of the alternative, completely legal, process they may utilise to pass trustee resolutions from their office or even home.
Prescribed Management Rule 14(4)(b) presents trustees with the option of passing trustee resolutions in writing by sending a notice to each trustee. When doing so, it is important to ensure that your notice ticks all the appropriate boxes. It must include:
1. The text of the proposed resolution;
2. An instruction to the trustees to indicate their agreement to the resolution by signature;
and
3. A due date by which the signatures must be returned.
While passing trustee resolutions in this manner can be highly effective, when using this method it is of the utmost importance to make sure your i’s are dotted and t’s crossed. This notice should be drafted very carefully and, if necessary, the writer must follow up with the trustees to ensure their votes are cast and received by the body corporate on or before the stated due date – ensuring that the resolution cannot be challenged on any procedural irregularity.
Unsure how to draft this type of notice properly? You are welcome to email info@theadvisory.co.za to obtain an obligation-free quotation for assistance with the drafting of your proposed resolution and notice.
Didn’t know that it was possible to pass a trustee resolution in this way? Why not sign up for the next presentation of the UCT/Paddocks Scheme Manager Sectional Title online short course to learn all the tips and tricks to manage your scheme as effectively as possible? Download the info pack here for more information.
