Sec­tional ti­tle play­ers

Fairlady - - YOUR MONEY -

1. BODY COR­PO­RATE

‘It's the col­lec­tive name given to the own­ers of the units and com­mon prop­erty within a sec­tional ti­tle com­plex,' ex­plains Leigh. ‘As a mem­ber you have vot­ing rights and are al­lowed to make your­self heard at AGMs and ques­tion trustees' de­ci­sions.'

2. TRUSTEES

‘The trustees are man­dated to man­age the funds, en­force the rules and poli­cies within the scheme and man­age the com­mon prop­erty,' says Leigh. 'Any owner or non-owner may put their names for­ward for con­sid­er­a­tion as a trustee, but you must be nom­i­nated in writ­ing by an owner in the scheme.' Trustees are ex­pected to act with fidu­ciary re­spon­si­bil­ity in the best in­ter­ests of the body cor­po­rate. ‘No fidu­ciary re­spon­si­bil­ity or any other re­spon­si­bil­ity be­stowed on a trustee can be con­tracted to an­other party, such as the manag­ing agent. The onus to act and man­age the af­fairs of a scheme will al­ways rest with the board of trustees.'

3. MANAG­ING AGENT

The ap­point­ment of a manag­ing agent is one of the most cru­cial func­tions of the trustees. ‘The manag­ing agent over­sees the fi­nan­cial run­ning of the scheme and its ad­min­is­tra­tive du­ties. This al­lows the trustees to be trans­par­ent in the man­age­ment of the fi­nan­cial af­fairs of the scheme and have an arms-length re­la­tion­ship with own­ers, res­i­dents and con­trac­tors, en­sur­ing their de­ci­sions and ac­tions are cal­cu­lated and made in the best in­ter­ests of the scheme.'

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