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Who can be a trustee of a body corporate

Who can be a trustee of a body corporate
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Answered in 1 hour by:
7/2/2010
Mike Otis
Mike Otis, Legal Advisor
Category: South Africa Law
Satisfied Customers: 2,161
Experience: B.Comm; LL.B; LL.M.
Verified
Dear Sir / Madam,

Thank you for your question. Please confirm what type of body corporate are you referring to. Are you referring to a sectional title complex?

Yours faithfully,
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Dear Sir / Madam,

Assuming that your question relates to a body corporate of a sectional title complex, the Sectional Titles Act (Act 95 0f 1986) itself provides no list of qualifications or capacities that a trustee of a body corporate must possess in order to be a trustee. Section 39 of the Sectional Title Act simply refers to the trustees being appointed in terms of the rules of the complex.

In other words, the management rules of the sectional title complex in question will determine which persons are eligible to be elected as trustees of its body corporate. In practice, the management rules places the same or similar restrictions on eligibility for election of a trustee, as would be the case of a director of a company. The most common restrictions are that at trustee:
1. must be a natural person;
2. may not be an unemancipated minor;
3. may not be an unrehabilitated insolvent;
4. may not be a person who has been convicted within the previous 5 years of fraud or any other offense involving dishonesty;
5. may not be a person who has previously been removed from a similar office due to misconduct.

Usually, trustees are elected from amongst the owners of units in a complex, but ownership is not necessarily a requirement.

I would therefore advise you to obtain a copy of the management rules from the present trustees or managing agent of the complex in order to establish what the exact requirements are for your particular body corporate.

More details on the restrictions on directors of companies can be found in sections 218-220 of the present Companies Act (Act 61 of 1973) (http://www.acts.co.za/company/index.htm) or in section 69 of the new Companies Act (71 of 2008) (http://www.acts.co.za/companies_act_2008/index.htm).

I trust you find the above in order.

Yours faithfully,
Mike Otis
Mike Otis, Legal Advisor
Category: South Africa Law
Satisfied Customers: 2,161
Experience: B.Comm; LL.B; LL.M.
Verified
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Mike Otis
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Experience: B.Comm; LL.B; LL.M.

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