21 Jan How to deal with a vacancy in the board of trustees

One of the most important decisions the members of a sectional title scheme must make every year is the appointment of trustees to manage the affairs of a body corporate. Unfortunately, it is not always given the consideration it deserves and internal conflict often results in members voting against candidates they dislike as opposed to voting for people based on their skill and capability.

How are trustees voted into office?

The election of trustees takes place once a year at the annual general meeting (AGM). There is no other forum where the appointment of trustees can be made. A trustee does not need to be an owner in the scheme; it can be anyone who was nominated and accepted the nomination.

Voting on agenda items at an AGM takes place by majority vote based on the participation quota value of each member`s section. The same also applies to the appointment of trustees; those candidates with the highest votes will be appointed as trustees.

If an insufficient number of trustees have been nominated and no other member at the meeting is prepared to make themselves available, the elected trustees may approach persons (members or non-members) after the AGM to convince them to serve as trustees. Such an appointment does not require the voting of the members of the scheme. The appointment of trustees in this manner is achieved by nominating the trustees along with their acceptance.

A trustee resigns – what now?

Trustees are appointed at an AGM and normally remain trustees until the end of the following AGM. However, if a trustee needs to resign before the end of their term, a written resignation must be accepted by the trustees.

With a vacancy needing to be filled, the remaining trustees have the option to approach other members of the body corporate (or non-members) to fill the position. Such appointments do not have to be approved by the rest of the members. The appointee will remain a trustee until the end of the next AGM.

There is no obligation to fill the vacancy; trustees can elect to continue their work with the reduced number of trustees should they deem it unnecessary to replace a trustee that has vacated their position.

Important appointment

Trustees have a very important role in the management of a sectional title scheme. Body corporate members are generally unperturbed by other people managing the affairs of the scheme; that is, until something goes wrong.

It is important that all the members in a sectional title scheme have a chance to serve as trustees. A good body corporate should promote transparency and involvement of all its members in the affairs of the scheme. It will serve to create a more harmonious and efficiently run scheme which is in the interest of all members.

Another blog you may enjoy: Can sectional title trustees be remunerated?