The management association is the representative body of the members of the pooling scheme. The management association by virtue of its constitution is the beneficiary of the trust thereby completing the commercial circle and contractual relationships of the various parties in the scheme. The absence of a property trust implies that the "points rights" sold to clients have no legal origin. The purpose of the property-owning trust, is to hold title to the weeks for the benefit of the management association.
The management association carries out the duties set out in the constitution of the vendor company as required by the Property Time Share Control Act. These duties inter alia include:
| a) |
the management and administration of the scheme for the benefit of its members, |
| b) |
the issuing of points rights to members, |
| c) |
procuring the proper maintenance of the accommodation and ensuring that the accommodation remains in a state of good repair, |
| d) |
establishing a levy fund, sufficient in the opinion of the executive committee of the association, for the management, administration and control of the scheme, |
| e) |
establishing a levy fund for the maintenance, repair and upkeep of the accommodation that shall include all aspects relating to the management of the scheme and the maintenance of the accommodation, |
| f) |
the administration of the points scheme so that the usage rights are protected, |
| g) |
administration of reservations made, |
| h) |
the collection of members' levy fees, and |
| i) |
to pay levies due to the resorts where the timesharing interests emanate from. |
In summary, the vendor company operates the pooling scheme according to the scheme rules. The property-owning trust is constituted to safeguard and hold title to accommodation included in the scheme according to the provisions of the trust deed. The management association consists of members who are holders of points rights in the scheme. The members are entitled to the use and occupation of the units for a specific time in relation to the number of points purchased.
Protection of Businesses Act, 1978
