Q&A – 2020 09

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!

What can owners do to force trustees to call an Annual General Meeting?

Member’s question:

Good day Paddocks,

Please advise what recourse owners have if trustees do not want to set the AGM date.

Regards

Graham’s answer:

Dear member,

They can demand that the trustees call that meeting – see PMR 17(4) and (5) for the process.

If this fails for some reason, any prejudiced owner can make application to CSOS for an order obliging the trustees to call the meeting.

Regards,
Graham

What authority or process is required for the payment of a trustee?

Member’s question:

Good day Paddocks,

We have a body corporate where one of the trustees, who does most of the physical day-to-day management of the complex, has asked for a monthly honorarium to be paid to her for services rendered. Can this be allowed should all owners agree? Is there a special process to be followed in order to place this on record?

Thank you.

Graham’s answer:

Dear member,

The proposed reward/honorarium needs to be approved by special resolution of the body corporate and included in its administrative fund budget.

PMRs 8(2) and (3), which apply to all schemes (unless this particular scheme has made a rule changing them), provides for this:

(2) Unless so determined by special resolution, trustees who are members are not entitled to any reward, whether monetary or otherwise, for their services as such.

(3) Trustees who are not members may be rewarded for their services as such; provided that any reward, whether monetary or otherwise, must be approved by a resolution of the body corporate as part of the budget for the scheme’s administrative fund.

Regards,
Graham


Article reference: Paddocks Press: Volume 15, Issue 09.

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 – September 2020 Edition.

Source: https://www.paddocks.co.za/paddocks-press-newsletter/qa-2020-09/

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