Management rule 27 is one of the most often ignored rules. This is what it says:

No document signed on behalf of this body corporate, shall be valid and binding unless it is signed by a trustee and the managing agent referred to in rule 46 or by two trustees or, in the case of a certificate issued in terms of section 15B (3) (i) (aa) of the Act, by two trustees or the managing agent.

The effect of this rule is that two signatures are required to authorise expenditure, accept quotations or enter into contracts and on every other type of body corporate document. The position regarding cheques and other bank documentation is covered below.