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New DUTIES OF A MANAGING AGENT

Most sectional title owners believe that a managing agent’s function is to send out statements and collect levies. Although this is a major and most visible part of the responsibilities, a competent agent will do a lot more for the body corporate. Managing a sectional scheme requires extensive knowledge of the Sectional Titles Act and rules, and access to secretarial and accounting facilities. Managing agents assist the trustees to administer the scheme.

They perform the day-to-day management tasks, taking primary responsibility for administrative and record keeping requirements and assisting in the physical management of the scheme. The managing agent provides the trustees with regular financial and other management information and assists them to make decisions. They usually provide a full accounting and levy collection service, deal with the payment of body corporate debts, assist in the appointment and supervision of any body corporate employees and in managing maintenance and repair projects.

A managing agent has a duty to individual owners, but usually takes direction only from the trustees. In terms of management rule 46, a managing agent is appointed in writing, for a period of one year, with automatic renewal on the anniversary of appointment unless either party gives notice to the other that the contract will not be renewed. If the appointment of the agent is not reduced to writing within 30 days, it is voidable at the option of either party. The trustees are entitled to appoint a managing agent, and must do so if directed by a simple majority of the members of the body corporate at a general meeting.

Prof. Graham Paddock
Adv. Louis Taljaard

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