Q&A – 2020 07

By the Paddocks Club team

Below are examples of two questions on the Paddocks Club discussion forum, to show you what is available to our Community members!

Can a trustee become a paid supervisor and remain a trustee also?

Member’s question:

Good day Paddocks,

Can a trustee become a paid supervisor and still remain a trustee?

Regards.

Graham’s answer:

Dear member,

Yes, but:

  1. you need a special resolution of members to authorise the payment,
  2. the salary must be reflected/included in the approved budget that currently applies; and
  3. the rights and obligations of the supervisor/trustee and the body corproate should be recorded in a written and signed contract

Regards,

Graham

How legal is a resolution with a virtual AGM?

Member’s question:

Good day Paddocks,

How legal is a resolution with a virtual AGM?

Normally, the resolution will be signed at the AGM. With a virtual AGM, it must be sent to be signed by the trustees. If not signed, is the resolution valid?

Who signs the resolution, the new trustees or old trustees?

Thank you.

Graham’s answer:

Dear member,

A resolution is valid once it has been properly taken by the meeting. The fact that the meeting is “virtual” does not change this principle.

The signature of a document confirming the resolution was taken is not the legal act that makes the resolution valid, it is the achievement of the required level of consensus among the BC members.

Whoever the trustees authorise to sign the confirmation of the resolution is entitled to do so.

To make my last comment clearer. People who were trustees at the time a resolution was passed, but are no longer trustees, cannot give any confirmation on behalf of the body corporate or its current trustees. So the trustees must authorise one of their number to certify that a particular resolution was taken, even if it was taken before the certifying trustee was in office.

Graham


Article reference: Paddocks Press: Volume 15, Issue 07.

Graham Paddock is available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

Back to Paddocks Press – July 2020 Edition.

Source: https://www.paddocks.co.za/paddocks-press-newsletter/qa-2020-07/

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