Governance Structure
OWNERS (General Meeting)
↓
TRUSTEES
↓
┌───────────────┐
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MANAGING AGENT CARETAKER
(Administration) (Operations)
OWNERS (General Meeting)
↓
TRUSTEES
↓
┌───────────────┐
↓ ↓
MANAGING AGENT CARETAKER
(Administration) (Operations)
In a sectional title scheme, authority flows from the owners to the Trustees, who are responsible for managing the affairs of the Body Corporate. Trustees may appoint a Managing Agent to assist with administration and may employ or contract a Caretaker to assist with operational matters on site.
Understanding how these roles interact helps ensure the scheme is managed efficiently and in compliance with the applicable legislation and scheme rules.
Owners
Owners form part of the Body Corporate and are the ultimate decision-making authority in the scheme when acting together at a general meeting.
Financial Responsibilities
Owners must contribute to the financial sustainability of the scheme by:
Maintenance Responsibilities
Owners must maintain their sections and internal fixtures in a state of good repair and ensure that their property does not cause damage to common property or other sections. Owners must also allow access to their sections when necessary for maintenance of common property.
Behavioural Responsibilities
Owners must ensure that their conduct, and the conduct of tenants, visitors and occupiers, does not cause a nuisance or interfere with other residents. Owners must comply with scheme rules and ensure that their tenants and visitors also comply.
Governance Responsibilities
Owners should participate in the governance of the scheme by:
Trustees
Trustees are elected by the owners and are responsible for managing and controlling the affairs of the Body Corporate between general meetings. They exercise the powers of the Body Corporate, subject to any directions or restrictions imposed by the owners.
Key Responsibilities:
Governance and oversight
Financial management
Maintenance and compliance
Trustees may delegate certain duties, but accountability for the governance of the scheme remains with them.
Managing Agent
Managing Agents are professional administrators appointed by the Trustees to assist with the administration of the scheme.
Their role is to support and advise the Trustees, not to replace them.
Typical functions may include:
Managing Agents operate under a written management agreement and implement decisions taken by the Trustees.
Caretaker
The Caretaker provides operational support and assists with the day-to-day management of the property.
Often described as the “eyes and ears” of the scheme, the Caretaker helps ensure that issues are identified early and addressed efficiently.
Typical responsibilities include:
The Caretaker operates in terms of an employment contract or service agreement and reports to the Trustees.
Working Together
A well-managed scheme depends on cooperation and clarity of roles.
When each role understands its responsibilities and works collaboratively, the scheme functions more effectively, disputes are reduced, and the value of the property is protected.
Understanding how these roles interact helps ensure the scheme is managed efficiently and in compliance with the applicable legislation and scheme rules.
Owners
Owners form part of the Body Corporate and are the ultimate decision-making authority in the scheme when acting together at a general meeting.
Financial Responsibilities
Owners must contribute to the financial sustainability of the scheme by:
- Paying levies raised by the Body Corporate in accordance with the approved budget and participation quota.
- Paying special levies when validly raised.
- Paying interest on arrear levies where applicable.
- Paying contributions relating to exclusive use areas where required.
- Remaining responsible for levies even if the section is rented out.
Maintenance Responsibilities
Owners must maintain their sections and internal fixtures in a state of good repair and ensure that their property does not cause damage to common property or other sections. Owners must also allow access to their sections when necessary for maintenance of common property.
Behavioural Responsibilities
Owners must ensure that their conduct, and the conduct of tenants, visitors and occupiers, does not cause a nuisance or interfere with other residents. Owners must comply with scheme rules and ensure that their tenants and visitors also comply.
Governance Responsibilities
Owners should participate in the governance of the scheme by:
- Attending general meetings.
- Voting on matters affecting the scheme.
- Providing contact and tenant details to the Body Corporate.
- Obtaining approval where required for alterations or improvements.
Trustees
Trustees are elected by the owners and are responsible for managing and controlling the affairs of the Body Corporate between general meetings. They exercise the powers of the Body Corporate, subject to any directions or restrictions imposed by the owners.
Key Responsibilities:
Governance and oversight
- Manage and administer the scheme.
- Ensure compliance with legislation and scheme rules.
- Act honestly and in the best interests of all members.
Financial management
- Prepare and approve administrative and reserve budgets.
- Determine levies and special levies.
- Ensure proper financial records are kept.
- Present financial statements to members.
Maintenance and compliance
- Maintain and repair common property.
- Implement the maintenance, repair and replacement plan.
- Ensure buildings are adequately insured.
- Enforce scheme rules fairly and consistently.
Trustees may delegate certain duties, but accountability for the governance of the scheme remains with them.
Managing Agent
Managing Agents are professional administrators appointed by the Trustees to assist with the administration of the scheme.
Their role is to support and advise the Trustees, not to replace them.
Typical functions may include:
- Preparing and issuing levy statements.
- Collecting levies and following up arrears.
- Paying Body Corporate expenses.
- Maintaining financial and statutory records.
- Preparing budgets and financial reports.
- Preparing meeting agendas and minutes.
- Advising on legislative compliance and governance.
Managing Agents operate under a written management agreement and implement decisions taken by the Trustees.
Caretaker
The Caretaker provides operational support and assists with the day-to-day management of the property.
Often described as the “eyes and ears” of the scheme, the Caretaker helps ensure that issues are identified early and addressed efficiently.
Typical responsibilities include:
- Monitoring maintenance and reporting defects.
- Supervising contractors and service providers.
- Carrying out minor repairs where appropriate.
- Monitoring compliance with scheme rules.
- Ensuring common property is clean, safe and presentable.
The Caretaker operates in terms of an employment contract or service agreement and reports to the Trustees.
Working Together
A well-managed scheme depends on cooperation and clarity of roles.
- Owners participate in governance and comply with scheme rules.
- Trustees manage the scheme and remain accountable for decisions.
- Managing Agents provide professional administrative support.
- Caretakers assist with operational and maintenance matters on site.
When each role understands its responsibilities and works collaboratively, the scheme functions more effectively, disputes are reduced, and the value of the property is protected.