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Sectional Titles Schemes Management Act, 2011 (Act No. 8 of 2011)


Sectional Titles Schemes Management Regulations, 2016


Annexure 1 : Management rules

Part 6 : Administrative Management

28. Executive Managing Agent and Managing Agents


(1) The body corporate may, by special resolution, appoint an executive managing agent to perform the functions and exercise the powers that would otherwise be performed and exercised by the trustees.


(2) Members entitled to 25 per cent of the total quotas of all sections may apply to the Community Scheme Ombud Service for the appointment of an executive managing agent.


(3) An executive managing agent—
(a) is subject to all the duties and obligations of a trustee under the Act and the rules of the scheme;
(b) is obliged to manage the scheme with the required professional level of skill and care;
(c) is liable for any loss suffered by the body corporate as a result of not applying such skill and care;
(d) has a fiduciary obligation to every member of the body corporate;
(e) must arrange for the inspection of the common property at least every six months; and
(f) must report at least every four months to every member of the body corporate on the administration of the scheme.


(4) The reports of an executive managing agent referred to in sub-rule (3)(f) must include at least the following details—
(a) proposed repairs to and maintenance of the common property and assets of the body corporate within the next four months;
(b) matters the executive managing agent considers relevant to the condition of the common property and the assets of the body corporate;
(c) the balance of each of the administrative and reserve funds of the body corporate on the date of the report and a reconciliation statement for each fund; and
(d) for the period since the appointment of the executive managing agent or from the date of the last report—
(i) the expenses of the body corporate, including repair, maintenance and replacement costs; and
(ii) a brief description of the date and nature of all decisions made by the executive managing agent.


(5) The body corporate may, if trustees so resolve, and must if required by—
(a) a registered mortgagee of 25 per cent in number of the primary sections; or
(b) a resolution of members,

appoint a managing agent to perform specified financial, secretarial, administrative or other management services under the supervision of the trustees.


(6) A management agreement for any managing agent must comply with the requirements as may be set out in the regulations.


(7) A management agreement may not endure for a period longer than three years and may be cancelled, without liability or penalty, despite any provision of the management agreement or other agreement to the contrary—
(a) by the body corporate on two months notice, if the cancellation is first approved by a special resolution passed at a general meeting, or
(b) by the managing agent on two months notice.


(8) The body corporate or trustees may by ordinary resolution cancel the management agreement in accordance with its terms or refuse to renew the management agreement when it expires.