Thinking Inside the Box

A Paddocks Sectional Title Lifestyle Blog

The duties of community scheme executives

hans-eiskonen-18942-unsplashBy Zerlinda van der Merwe

In this article, we will be taking a look at the duties of the executives of community schemes, such as trustees and directors, as prescribed under the Regulations to the Community Schemes Ombud Service Act 9 of 2011 (“the CSOSA”), which are in addition to the duties found in the relevant legislation or governing documentation of community schemes.

What is a community scheme?

Section 1 of the CSOSA describes a “community scheme” 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 owners’ association, however, constituted, established to administer a property development;
  • a housing scheme for retired persons; and
  • a housing co-operative.

The duties of a scheme executive

Let us look at the duties prescribed by the CSOSA. Firstly, 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 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 being decided on, in order to make conscientious and informed decisions in their executive capacity.

The scheme executives must further exercise an active and independent opinion in respect to the aforementioned decisions taken, and in this regard, the other executives cannot simply rely on the decision of the chairperson but must take their decision independently of that of the chairperson, which may conflict.

Paddocks Community Scheme Specialists, offer UCT training courses, legal advice, consulting and books for those involved in sectional title schemes, homeowners’ associations and other forms of community schemes.

Should you have any queries relating to this topic, contact the writer, Zerlinda van der Merwe, via email at consulting@paddocks.co.za or telephonically on 021 686 3950.

 

Photo by Hans Eiskonen on Unsplash

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This entry was posted on June 13, 2018 by in Uncategorized.

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