In Part 7 of this newsletter we looked at the role of the auditor in a scheme.
In Part 8 of this series we will look at the role and appointment of an executive managing agent (EMA).
An EMA is usually a practicing managing agent, appointed to perform the functions and exercise all the powers, that would normally be performed by the elected trustees.
The EMA is either a person or company, appointed by the body corporate (BC), with the purpose of being a paid trustee. Usually because no members of the body corporate are available or prepared to stand as trustees or where the trustees, following some dispute resign en masse and no one can be found to take their place.
Very important to note is that the EMA, unlike 'normal' managing agents, takes on the same liability as a trustee.
This is therefore not a job to be taken lightly. The EMA must manage the scheme with the skill and care required of a professional person, and will be liable to the BC for any loss suffered if he/she does not excercise the necessary skill and care. It therefore of the utmost importance that the trustees ensure that the EMA has sufficient Professional Indemnity cover in place.
Article courtesy of Marina Constas and Karen Bleijs Demystifying Sectional Title
In Part 9 of this newsletter we will look at an Administrator of a scheme.