WHO ARE THE TRUSTEES?

WHO ARE THE TRUSTEES?

Trustees are appointed by the body corporate at an AGM. They are usually owners of units in a scheme who have been entrusted with the task of looking after the scheme on a day-to-day basis. Although neither the Act nor prescribed rules impose a maximum number of trustees, the minimum number of trustees for a scheme is two. Ideally, a trustee should possess skills or qualities that will be of benefit to the scheme. Accounting, bookkeeping or legal knowledge, organisational abilities, knowledge of electrical or mechanical matters and PC skills are much in demand, and can save the body corporate a lot of time, trouble and money.

It is permissible to appoint a trustee who does not own a unit in the scheme, although this is neither a common practice nor is it usually desirable. The majority of trustees must be owners, or the spouse of an owner of a unit in the scheme. An employee of the body corporate, such as a caretaker or supervisor, may not be a trustee. Trustees are volunteers who in most circumstances may not be paid for acting as a trustee. An exception to this rule is that a trustee who is not an owner may be remunerated at a rate decided by the body corporate. However, all trustees are entitled to reimbursement for all legitimate costs incurred by them in execution of their duties. At the first meeting of the trustees after being appointed, the trustees elect a Chairman who usually holds office until the next AGM.

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