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Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Trustee could be held liable

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This week the Property Poser panel assists the owner of a unit in a sectional title complex who questions the validity of a decision to install water meters by his body corporate.

The reader writes that he attended the annual general meeting (AGM), which was apparently held at an inconvenient time for most of the owners. He does not specify whether there was any lack of quorum as a result.

One of the issues discussed was the installation of water meters. The reader explains that it was agreed that quotations could be obtained for installation costs but that the actual installation was not approved.

The minutes confirm the request for quotes only. He says it was further decided that the owners would first receive correspondence relating to the potential costs before a final decision was made.

Soon thereafter, the water meters were, in fact, just installed, with no approval or discussion. Adding insult to injury, the actual installation process was troublesome, with certain units suffering water damage and burst geysers apparently as a result of non-professional installers being employed.

The reader would like to know what options are available to the owners as the trustees are ignoring their plight.

A sectional title complex is controlled and managed by a body corporate for the benefit of all owners, says Charlotte Vermaak from Chas Everitt in Port Elizabeth.

“At the AGM, which is held once a year, some of the aspects typically up for discussion include the financial statements, as well as an estimate of the income and expenditure referred to in the budget.”

Vermaak says the appointment of trustees for the following year and any special business of which due notice has been given are also discussed.

“It’s possible to call a general meeting other than an AGM, which is then called a special meeting.”

The trustees can call such a special general meeting whenever they see fit or it can be arranged upon request in writing by 25% of the quotas of all sections, says Vermaak.

With the current problems being faced by the owners, a special meeting could certainly be requested, says Rian du Toit from DTS Attorneys in PE.

“This may be the correct forum to discuss and decide whether the installation of the meters was, in fact, authorised and, furthermore, what steps should be taken to repair the damages suffered as a result of the poor workmanship.”

If the work had been implemented without the proper decision-making process being in place, the authorisation granted to the company that performed the installation would have been invalid from day one, says Du Toit.

“It should be determined whether the body corporate’s mandate in this instance was to source quotations or to authorise works.”

According to Du Toit, had any one of the trustees acted outside the scope of his or her authority, that trustee could be held liable for any damages suffered as a result.

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Fullstop

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