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 Question:
The trustees in my block have decided to pay themselves a salary after
the managing agents assured them that this is legal as long as 75 percent
of the members agree. This decision was passed (three votes to one) by
the trustees (there are seven trustees, but three were unable to attend
the meeting where it was passed).
My understanding is that trustees are not entitled to remuneration when
carrying out their normal duties. One of them claims he is entitled to
be paid as he looks after the garden!
Answer:
Prescribed management rule ('PMR') 10 deals with the remuneration of trustees.
PMR 10 distinguishes between remuneration of owner trustees and remuneration
of non-owner trustees. In terms of this rule owner trustees are not entitled
to remuneration unless otherwise decided by special resolution of the
owners. However, non-owner trustees may be remunerated at such rate as
is agreed upon between the body corporate and such trustees.
In light of the above it is clear that owner trustees are not entitled
to be paid for their services as such, but may be paid if it is so decided
by special resolution of owners (75 percent of owners in both number and
value voting for the owner trustees to be remunerated). However, non-owner
trustees may be paid if the body corporate (in practice the other trustees)
agree by majority vote.
Therefore the situation you describe would be fine if the trustees who
are being paid are non-owner trustees, but if they are owner trustees
then they may not be paid without the authority of a special resolution
of the body corporate.
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Newsletter:
3 February 2012 to 10 February 2012 - Krugersdorp, Gauteng, South Africa
