Remuneration of Sectional Title Trustees
One of the reasons why all too often sectional title schemes have trustees that “are not too keen on the job” is that these people are not paid to perform their important task of managing the affairs of the body corporate and sectional title owners tend neither to respect or appreciate their contribution.

“Owners have unrealistic expectations of trustees’ abilities which result in unnecessary conflict, disputes, insults, and sometimes even harm and injury,” says Michael Bauer, GM of IHFM, a specialist sectional title management company.

Bauer points out in his latest sectional title newsletter on that there can, however, be exceptions to the non-payment rule.

“The Prescribed Management Rules,” says Bauer, “make it clear that trustees who are owners in the scheme are not be entitled to any remuneration unless otherwise determined by a special resolution of the owners. This means that a special resolution can be passed entitling the trustees to payments of some kind over and above the direct expenses involved in being a trustee which are authorised by the Prescribed Management Rules.

“It also means that a body corporate which feels it needs more expert input can recruit and pay an outsider, a non-owner, to be a trustee. Such people can make a valuable input.”

In general, says Bauer, the rule against not paying owner trustees is a good one because it prevents people becoming involved for the wrong reasons. However, he says, it has been a significant deterrent to competent people volunteering to be trustees coupled to the serious lack of appreciation of their input from owners, it is not surprising that so few people volunteer to be trustees,” says Bauer. “I appeal to all sectional title owners to show more gratitude to those who work for them in this way.”

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