What are the functions and duties of a trustee in a sectional title body corporate?
ELA
EstateIQ Legislative Assistant
Trustees in a sectional title scheme have a defined and regulated role under the Sectional Titles Schemes Management Act (STSMA) and related documents. Their core functions are to act as the executive arm of the body corporate, managing its affairs on behalf of all owners.
✅ Trustee Functions (as per Section 7 of the Act)
- Exercise Body Corporate Powers: Trustees are responsible for exercising the powers and performing the functions of the body corporate, as outlined in the Act, rules, and any directions from owners in general meetings.
- Subdivision/Consolidation Consent: Trustees must receive and may consent to applications by owners to subdivide or consolidate sections—consent must not be unreasonably withheld.
- Land Survey Authority: For purposes relating to land surveying (e.g. beacons and boundaries), trustees are deemed to be the "owner" of the land.
⚖️ Fiduciary Duties (Section 8 of the Act)
Trustees must:
- Act honestly and in good faith in the interest of the body corporate.
- Avoid conflicts of interest and disclose any personal benefit or material interest in contracts.
Breach of fiduciary duty can result in personal liability to the body corporate for any loss or gain.
🔧 Operational Duties (via Management Rules)
Trustees' responsibilities also include:
- Managing finances: budgets, levies, reserve funds.
- Overseeing maintenance: common property and shared infrastructure.
- Convening meetings: trustee and owner meetings, issuing notices.
- Enforcing rules: ensuring compliance with conduct and management rules.
- Appointing and overseeing managing agents (unless an executive managing agent is appointed under Rule 28, in which case, trustees may be bypassed).
Summary
In summary, trustees manage the day-to-day operations, financial affairs, and compliance obligations of the body corporate. Their authority is limited by the legislation, scheme rules, and any instructions passed at general meetings.
ELL
EstateIQ Legal Lookup
📘 Legislative References
STSMA Section 7 – TRUSTEES OF BODY CORPORATE
7(1): The functions and powers of the body corporate must, subject to the provisions of this Act, the rules and any restriction imposed or direction given at a general meeting of the owners of sections, be performed and exercised by the trustees of the body corporate holding office in terms of the rules.
7(2)(a): In addition to the functions contemplated in subsection (1), the trustees of the body corporate must receive and may consent to applications for subdivision of sections or consolidation of sections, made by the owners of sections.
7(2)(b): Such consent must not unreasonably be withheld by the trustees.
7(3): For the purposes of an agreement in respect of the beacons and boundaries of the common property required in terms of the Land Survey Act, 1997 (Act No. 8 of 1997), the trustees are deemed to be the owner of the land.
STSMA Section 8 – FIDUCIARY POSITION OF TRUSTEES
8(1): Each trustee of a body corporate must stand in a fiduciary relationship to the body corporate.
8(2): Without derogating from the generality of the expression fiduciary relationship, the provision of subsection (1) implies that a trustee—
8(2)(a): must in relation to the body corporate act honestly and in good faith, and in particular—
(i) exercise his or her powers in terms of this Act in the interest and for the benefit of the body corporate; and
(ii) not act without or exceed those powers; and
8(2)(b): must avoid any material conflict between his or her own interests and those of the body corporate, and in particular—
(i) not receive any personal economic benefit, direct or indirect, from the body corporate or from any other person; and
(ii) notify every other trustee of the nature and extent of any direct or indirect material interest which he or she may have in any contract of the body corporate, as soon as such trustee becomes aware of such interest.
8(3): A trustee of a body corporate who acts in breach of his or her fiduciary relationship, is liable to the body corporate for—
8(3)(a): any loss suffered as a result thereof by the body corporate; or
8(3)(b): any economic benefit received by the trustee by reason thereof.
8(4): Except as regards the duty referred to in subsection (2)(a)(i), any particular conduct of a trustee does not constitute a breach of a duty arising from his or her fiduciary relationship to the body corporate if such conduct was preceded or followed by the written approval of all the members of the body corporate where such members were or are cognisant of all the material facts.
📖 Further Reading
For a comprehensive guide on this topic, read our detailed blog post:
Trustee Responsibilities →