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The Sectional Title Act and trustees

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The Sectional Title Act and trustees

10 Feb 2015

At the last free trustee workshop for trustees of sectional title schemes, held by property management company IHFM, interesting aspects of sectional title management came to light.

Bauer says the Prescribed Management Rules (PMR) are important and are used in conjunction with the ST Act in determining what should be done in certain instances, but the PMR must not be confused with the conduct rules of the scheme.

This is according to Michael Bauer, general manager of IHFM, who says one of these aspects is that many trustees are not familiar enough with the provisions of the Sectional Titles Act, Amendment of the ST Act or the Prescribed Management Rules.

All trustees of bodies corporate should be given these when they are elected so that they have an understanding of their roles, as well as the way the scheme should be run. 

Bauer says at the most recent workshop, these were dealt with at length, and the most pertinent were pointed out.

When it comes to the main duties of the trustees, sections 35 to 40 of the ST Act deals with these: 35 deals with rules, 36 with how the body corporate is run, 37 with the functions of the body corporate, 38 deals with the powers of the body corporate, 39 is the functions and powers that are to be performed and exercised by the body corporate and 40 deals with proceedings on behalf of the body corporate, such as dealing with disputes.

The most important of these is section 37, which compels trustees to raise levies, manage expenditure, manage exclusive use areas and common property, and so forth.

Bauer says the Prescribed Management Rules (PMR) are important and are used in conjunction with the ST Act in determining what should be done in certain instances, but the PMR must not be confused with the conduct rules of the scheme.

The PMR are set and usually do not change; these govern the way the scheme is managed. Conduct rules can vary from scheme to scheme, although slightly, and these govern the way the residents behave while living in the scheme.

IHFM run regular trustee workshops which are free of charge and they encourage anyone who lives in a sectional title scheme, particularly those who are trustees or who are thinking about becoming trustees, to attend.

To receive information on the next and subsequent workshops, subscribe to IHFM’s newsletter

Author: Michael Bauer, general manager of IHFM

Submitted 12 Feb 15 / Views 2364