Page 34 - Robin Twaddle PTG 2017 Digital

PROMOTION OF GOOD GOVERNANCE, TRAINING AND EDUCATION

Duties of Scheme Executives
A scheme executive (which includes Trustees of a Sectional Title body corporate, the board
of directors of a share block company, and the management association of any housing
scheme for retirement persons), must inform and educate himself about the community
scheme, its affairs and activities and the legislation and governance documentation, as
well as obtain sufficient information and advice about all matters to be decided by scheme
executives.

He or she must attend all meetings of the scheme executives and attend the Annual
General Meeting (unless excused by the Chairperson), exercise due diligence and act in a
fiduciary capacity at all times.

Fidelity Insurance
Every community scheme is obliged to obtain fidelity insurance and insure against the
risk of loss of money belonging to the scheme, sustained as a result of any act of fraud
or dishonesty committed by any “insurable person”, which means a scheme executive, an
employee or agent of a community scheme, who has control over the money of a community
scheme, a managing agent, and a contractor, employee or other person acting on behalf
of or under the direction of a managing agent, who in the normal course of the community
scheme’s affairs has access to or control over the monies of the community scheme.

Quality and Form of governance documentation
The Chief Ombud may, by written notice to the community scheme, require that:
◆◆ The scheme governance documentation be lodged with the Ombud Service within

90 days after the establishment of the community scheme or within 90 days after the
coming into operation of the Regulations (1 October 2016).
◆◆ Should any amendments to the documentation be made, the governance
documentation will need to be consolidated so as to produce an updated document.
◆◆ Scheme governance documentation includes any rules, regulations, articles,
constitution, terms, conditions or other provisions that control the administration or
occupation of private areas and common areas in a community scheme.

OFFENCES AND PENALTIES

CSOS aims to keep Trustees and members of the body corporate in line, in that it
provides that any person is guilty of an offence, and is liable, on conviction, to a
fine or imprisonment for a period not exceeding five years or to both a fine and such
imprisonment, where he or she contravenes the Act. The list of offences to which this
provision applies are set out in Section 34.

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