In Part 5 of this newsletter we looked at the Community Schemes Ombud Service.
In this newsletter we will look at the Managing Agent (MA).
Accountable and transparent corporate governance is essential for every sectional tilte scheme.
It is therefore highly recommended that a qualified, experienced MA, registered with the National Association of Managing Agents (NAMA) is appointed to attend to the day-day running of a scheme.
Trustees have the power to appoint a MA if an ordinary resolution has been passed - simply if there are 51% in favour at a general meeting.
A MA is appointed to perform specific financial, secretarial, administrative and other management services - very important though - under the supervision of the trustees.
Under no circumstances can the trustees shirk their duties and obligations under the Act. The trustees have a fiduciary duty and the buck stops with the trustees!
The MA's duties must be clearly set out in the management contract as well as the management fee that will be charged.
Always check the MA's accreditation, experience and references before signing and becoming bound by a contract.
In Part 7 of this newsletter we will look at the The Auditor.
Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title