In sectional title schemes, trustees play a crucial role in overseeing the day-to-day management of the scheme on behalf of the body corporate. But what happens when those trustees fail to act in the scheme’s best interests — or worse, cause harm through mismanagement or misconduct?

While trustees are given authority to make key decisions, their power is not without limits. When there is a loss of trust, a breakdown in performance, or suspected mismanagement, owners have the right to act. This blog sets out how trustees can be removed, what the law requires, and what options are available when serious issues arise.

What Is the Role of Trustees in a Sectional Title Body Corporate?

Trustees are appointed by the members of the body corporate — that is, the registered owners of units within the sectional title scheme — to carry out the functions of the scheme and manage its affairs. Their responsibilities include:

• Managing the scheme’s finances, including levies, budgets, and expenditure;
• Ensuring compliance with the Sectional Titles Schemes Management Act (STSMA) and the scheme’s conduct and management rules;
• Appointing contractors and service providers where necessary;
• Overseeing maintenance and repair of common property;
• Representing the body corporate in dealings with third parties, including insurers and municipalities.

Trustees act in a fiduciary capacity, meaning they must always act in good faith, avoid conflicts of interest, and prioritise the best interests of the body corporate as a whole. Where this fiduciary duty is breached — either through inaction, poor judgement, or abuse of authority — members are entitled to intervene.

When Is the Removal of a Trustee Justified?

Removing a trustee or board of trustees is not a decision that should be taken lightly. However, there are valid circumstances where removal is warranted, including:

• Negligence or mismanagement, such as failing to maintain financial records or authorising unauthorised expenditure;
• Conflict of interest or misconduct, where a trustee is using their position for personal gain;
• Consistent failure to perform duties, such as not attending meetings, failing to act on resolutions, or obstructing decision-making;
• Abuse of power, including making unilateral decisions without consulting fellow trustees or members;
• Loss of trust, particularly where a trustee’s actions have led to reputational or financial damage to the scheme.

In more serious situations — where there is systemic dysfunction, financial impropriety, or repeated failure to comply with legal obligations — members may need to consider external interventions, such as the appointment of an executive managing agent or court-appointed administrator.

Steps to Remove a Trustee or Board of Trustees

1. The unit owners can remove a board of trustees in a sectional title scheme through an ordinary resolution at a general meeting. However, the meeting notice must clearly specify the intention to vote on the proposed removal. 
2.  This means that the members must be informed in advance that the removal of one or more trustees will be on the agenda for discussion and voting.
3. The removal can take place at a general meeting by ordinary resolution.
4. The notice calling the meeting must state the intention to vote on removing the trustee(s).
5. The trustee ceases to hold office if the removal is passed.
6. After removal, the members may appoint replacement trustees in the same general meeting or at a subsequent meeting.
7. If the trustees or the body corporate fail to act properly or if there is serious financial or administrative mismanagement, the members may consider appointing an executive managing agent or applying to a court to appoint an administrator who would effectively take over the trustees' role.

In summary, to remove the board of trustees:

1. Call a general meeting with proper notice specifying the intention to remove trustees.
2. Pass an ordinary resolution at that meeting to remove the trustees.
3. Appoint replacement trustees if necessary.
4. If the situation is severe and the trustees are not functioning properly, the appointment of an executive managing agent may be necessary.

VDM Attorneys – Guidance on Trustee Removal and Sectional Title Governance

Removing a trustee or an entire board in a sectional title scheme is a legally regulated process that requires strict compliance with meeting procedures, notice requirements, and voting thresholds. When not handled correctly, it can result in disputes, delays, or even legal challenges from the trustees being removed.

At VDM Attorneys, we assist sectional title owners and bodies corporate with the legal and procedural steps involved in trustee removal, ensuring every action is legally compliant and enforceable. 

If you're facing governance issues within your sectional title scheme, consult with our team to ensure the removal process is handled correctly — and in accordance with the law.