Sectional title corner – Can a tenant be elected as a trustee?
Hi, I am an owner of a shareblock scheme of flats in Durban which has recently converted to sectional title (although the first transfer will only go through in a couple of months).
Our AGM is coming up soon and I need clarity on whether a non-owner can be elected as a director/trustee of the board? There is a very responsible, capable tenant and his landlord who owns the flat is keen for him to go on the board, but is under the impression that tenants aren’t permitted. Please can you advise. – Cherilyn
Hi Cherilyn, shareblock works like any other company. Anybody can be a director – even tenants. They just have to be nominated by a shareholder.
An interesting note is that even with sectional title they can be trustees; the provision in the sectional title act that previously stated that the majority of trustees must be owners or spouses of owners fell away on 7 October, 2016 when the new Sectional Title Schemes Management Act came into effect.
Got a burning question? Email firstname.lastname@example.org and we’ll be sure to assist you
Who is Karien Coetzee?
Karien Coetzee is the national property management consultant at property management company, Trafalgar. She holds qualifications in sectional title schemes management and homeowners association management.