Duties of scheme executives
By Zerlinda van der Merwe
In this article, we will be taking a look at the additional duties of (community) scheme executives, who are responsible for the administration and management of community schemes, as prescribed in the Regulations to the Community Schemes Ombud Service Act (“the CSOSA”).
Scheme executives are either the trustee committee or the board of directors of a community scheme, nominated and elected by the members of the community scheme, being responsible for the good governance and the enforcement of the applicable governance documentation of the community scheme.
The prescribed duties are applicable to all community schemes, as defined in section 1 of the CSOSA as any scheme or arrangement in terms of which there is shared use of, and responsibility for parts of land and buildings, including but not limited to:
- A sectional title development scheme, a share block company;
- A home or property owner’s association, however constituted, established to administer a property development;
- A housing scheme for retired persons; and
- A housing co-operative.
Attendance at, and preparation for, all executive and general meetings, is compulsory for scheme executives, unless an executive has a reasonable excuse for not being able to attend such a meeting, and following notification to the chairperson of the executives, they are excused. In this regard, it is a good idea for the scheme executives to plan ahead and agree on future dates for meetings.
In order to effectively fulfill the role of scheme executive, such a person, whether or not they are a member of the community scheme, must take reasonable steps to inform and educate themselves about their scheme, and its governance documentation, such as a constitution, memorandum of incorporation, and management or conduct rules.
The scheme executive must take reasonable steps to obtain sufficient information and advice relating to any matter due to be decided on, in order to make conscientious and informed decisions in their executive capacity. They must further exercise an active and independent opinion in respect to these decisions.
It is important to remember that these duties are in addition to the fiduciary duties and responsibilities provided for in the legislation governing the particular scheme, and its own governance documentation.
Should you have any queries relating to this topic, contact us via email at consulting@paddocks.co.za or telephonically on 021 686 3950, for a non-obligation quote. Alternatively, contact us telephonically for a 10-minute telephonic consultation at a cost of R390.00 (Incl. VAT).
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