The Trustees shall, on behalf of the Body Corporate, control, manage and administer through its appointed agents and employees: The cleaning, maintenance, management and security of the Common Property. This guide is designed to help anyone involved with a trust understand the key elements of forming and administering a trust in South Africa. When a person who was appointed outside South Africa as trustee has to administer or dispose of trust property in SA, the provisions of the TPCA will apply to this trustee in respect of the property, and the Master may authorise him/her to act as trustee in respect of that property. Role of trustees in sectional title. All trustees—whether independent or not—are charged with the responsibility of ensuring that the trust functions properly to the greatest benefit of the beneficiaries. The most important duties of a Trustee are to: 1. All trustees… Found inside – Page 18-62Indeed , the absence of a duty is reflected by the freedom of the trustee to agree ... In one respect , the South African trust is more favorable than the ... the same service e.g. Found inside – Page viThe governance of a trust is in the hands of its trustees and all assets, liabilities, rights and duties of the trust vest in them. Found inside – Page 189A discussion of these duties and powers falls outside the scope of this chapter. Suffice it to say that in South Africa the law regarding this issue has ... The trustees’ powers in respect to the administration of the trust are derived from the trust instrument. The trustees are required to administer the trust solely for the benefit of the trust’s beneficiaries. Furthermore, non-residents may not be trustees of South African registered trusts. If trusts are not managed properly, trustees may be removed from office by the Master of the High court. One of the first responsibilities that any trustee has to comply with is to read and understand the trust deed or the trust instrument (it could be a will as well), and to understand the powers and duties and responsibilities and to also become familiar with the duties and obligations in law and specifically the Trust Property Control Act of 1988. Trustees’ duties and responsibilities The Indian Trusts Act, 1882 provides for certain duties/liabilities of a Trustee, we shall see each one of them in brief detail. The founder holds assets (without owning them) for the benefit of the trust beneficiaries. “A competent board of trustees is the secret to all successful schemes. 10 things to know about South African trusts. ”The trust was imported in South Africa by common usage after the British occupation of the Cape in 1806. Found inside – Page 195Butterworth & Co. ( Africa ) Ltd. , 1953 , pp . xix and 169. Price : £ 2 5s . The details of the South African law of trust dealing with the appointment of a trustee and his duties are fairly well - developed but the essential nature and structure of the ... Duty of care and negligence:According to Section 9 of the Act, a Trustee must act with “the care, diligence and skill which can reasonably be expected of a person who manages the affairs of another”.This essentially means that Trustees, who are the administrators of a trust, are obliged to act in a fiduciary capacity. The most common example is a trustee of a trust, but fiduciaries can include attorneys, guardians, administrators of estates, trustees of a Body Corporate, etc. special kind that is described by the authors of Honore’’s South African Law of Trusts as “a legal institution in which a person, the trustee, subject to public supervision, holds or administers property separately from his or her own, for the benefit of another person or persons or for the Found inside – Page 3-75South Africa. within one month as from the date upon which it was reported to the trustee , that person shall report it in ... 19 Failure by trustee to account or perform duties If any trustee fails to comply with a request by the Master in terms of ... To fulfill this obligation, co-trustees are expected to work together and to act in … There can be more than one trustees in a single Trust. Found inside – Page 301In the South West Africa Case, for example, the court reaffirmed part of an ... that trusteeship agreements give rise to substantive rights and duties. Found inside – Page 251do not exist in South Africa , this provision is a curious example of the reception of a rule of English company law . ... TRUSTEE'S DUTY TO OBTAIN REASONABLE RETURN ON TRUST CAPITAL By accepting office a trustee undertakes duties ... Check that owners, who are in arrears, bring … They must balance potentially competing interests for income and capital. Found inside – Page 321South Africa, Morné Van der Linde, Loretta Feris ... Powers and duties of Minister as trustee (1) The Minister must do whatever is necessary to achieve the ... As a trustee, you stand in a "fiduciary" role with respect to the beneficiaries of the trust, both the current beneficiaries and any "remaindermen" named to receive trust assets upon the death of those entitled to income or principal now. The trustees owe, both at common law and in terms of statute, a fiduciary duty to the trust’s beneficiaries. The general duties of trustees are: To observe the terms of the trust - Trustees must learn the terms of the trust and comply strictly with the duties and directions set out in the trust deed. In 2005, in the landmark Land and Agricultural Bank of South Africa v Parker case, the Court suggested that each family trust should appoint an independent trustee. Found inside – Page 185... general held the position of trustee as far as communal land was concerned , by transferring the communal land held in trust to the government of the then South West Africa , but by retaining the powers , duties and functions under the trust . • Community Trustee – through consultative process with the community using the published criteria i.e. A trustee is personally liable for breach of his or her fiduciary duties. A person who is ineligible or disqualified in terms of … Trustees appoint a chairperson from among their ranks, and trustee meetings must have 50% attendance in order to be quorate. Found inside – Page 20The trustees argue that the Ordinances alter the duty of prudence by radically reducing the universe of eligible investments . There is no doubt that the Ordinances place some limits on the scope of investment . Using the South Africa Fund's ... Furthermore a total levy income of over R5bn is collected per annum, which places a huge fiduciary responsibility on the trustees who are elected to this position. Private Property South Africa. Found inside – Page 101been ongoing efforts to beef up the role of trustees , particularly of the memberappointed trustees . Many of these efforts have been aimed at building ... Some points to consider when setting up a trust: The most important thing … As an affiliate dean of academic providers, Catherine Bolton spends plenty of time finding out, lamenting and worrying about cheating in universities. Although it was not legislated, the Master of the High Court preferred if a trust had an independent trustee appointed. A reader has asked the Property Poser experts to clarify the rules regarding the appointment of trustees in a sectional title complex. While many tasks in sectional title schemes can be delegated to a managing agent, fiduciary duty remains with the trustees. • IDC Trustees - appointed by IDC Executive Committee. We provide a wide selection of academic assignmen A trustee must further avoid any material conflict of interest in relation to the body corporate. Found insideThe FSB informed that in practice the trustees open a eparate trust account ... the manager and any of its agents to perform or all of the trustee's duties, ... A trust is an arrangement that allows someone to hold assets (without owning them) for the benefit of the trust beneficiaries. A trustee owes a duty of loyalty to all of the trust beneficiaries. Found inside – Page 13... at present” (South West Africa Cases: Ethiopia and Liberia v South Africa ... active trust (special trust) A trust that imposes duties on the trustee ... Duties of a Trustee: Loyalty. In this sense it can be said that the trust instrument represents the source of the trustees’ powers. •  Independent Trustees - advertise on newspaper / through any organisations that render the same service e.g. Institute of Directorship of South Africa (IoDSA). •  IDC Trustees - appointed by IDC Executive Committee. •  Project Company Trustee – appointed by the Management of the Project Management. Found inside – Page 153According to natives who petitioned the Trusteeship Council during its early ... petitioners from the African trust territories of South West Africa, Togo, ... If trusts are not managed properly, trustees may be removed from office by the Master of the High court. Found insidethe Non-European Peoples in South Africa.” However, administra- tive and teaching duties consumed much of his time at Howard, and before he could begin ... Depending on the trust deed, this may mean audited financial statements, or statements by an accountant. Found insideinstruments.1479 From the definition of a trust in this Act, ... trustee must provide security for the faithful performance of his or her duties as trustee, ... The duties of directors, in addition to existing common law duties, include both a fiduciary duty and a duty of reasonable care. Found inside – Page 271... of the trustee.57 Indeed, in Land and Agricultural Bank of South Africa v. ... of the South African trust, evident in the early description of the trust ... In the 1920s there was an Appeal Court decision here in South Africa that basically said that trustees should not expose trust assets to any risks, any business risks. A trust is not recognised as a separate legal person in South Africa, and it is therefore the trustees in their official capacity that can be held liable. Found inside – Page 246However , unless mala fides or gross negligence can be proved , the body corporate must indemnify the trustees for all costs , losses , expenses and claims arising by reason of a discharge of their duties . " The Act provides that each trustee ... The steps trustees can take to ensure they are qualified to execute their duties are to: - Familiarise themselves with the Sectional Titles Act and their scheme's management and conduct rules. Found inside – Page 40The trust agreement establishes the responsibilities of the manager and trustee and custodian (if applicable) and such custodian must also be non-affiliated ... ; To act impartially between beneficiaries - Trustees mustn’t allow one beneficiary to suffer at the expense of another. Check that each owners pays his/her fair share (levy) towards the monthly running costs of the complex, 2. Although it is not yet a legal requirement in South Africa, most offices of the Master of the High Court are insisting on an independent trustee being appointed as a requirement on new trusts which can be classified as family business trusts in terms of a Directive issued by the Chief Master in 2017 (2/2017). Found inside – Page 383that makes the difference between entrusting and trust'.3 In short, ... South Africa and Scotland' in Aequitas and Equity: Equity in Civil Law and Mixed ... In South Africa, trusts are governed by the Trust Property Control Act No. 57 of 1988 (TPCA). All decisions and actions taken by the trustees must be made with reference to the trust deed and the TPCA, which regulates certain administrative aspects relating to trusts. Found inside – Page 608TRUSTEES – continued unit trusts : obligations under trust deed 26 110 qualifications 26 109 registration 26 109 retirement 26 110 winding - up of unit portfolio : duties 26 108 TRUSTEES – continued duration of office 24 304 election 24 170 ... Sectional title properties have become a popular way of living for many South Africans, and along with this type of living comes a body corporate and trustee setup. Found inside – Page 12Ismail and Amod . transfer of the property was taken in the 239 name of one partner , and transfer duty paid by him as ... -An abnames of the original members of the syndicate original native of South Africa is entitled to in trust for the company . the founder, the Master’s Offices in South Africa will insist that an unrelated party, qualified to act as a Trustee, be appointed to act as Trustee together with the related parties. The most important duties of the Trustees are summarized in Management Rule 28 which provides that apart from performing the duties specified in the Act, the Trustees should control, manage and administer the common property as well as enforce the Conduct Rules in place. §Trustees must act independently at all times and must not be influenced in their decision by other trust parties; §When granting loans or signing suretyship, trustees are duty bound to ensure that such action is to the benefit of the trust and the beneficiaries. Being a trustee in a sectional title complex can be fulfilling but is also a huge responsibility. [i] 3. - Appoint a competent managing agent to whom they can rely for advice. Found inside – Page 24Section 40 of the Sectional Titles Act of 1986 provides that each trustee of a body corporate shall stand in a fiduciary relationship to the body corporate and spells out expressly what this fiduciary duty entails . Whether this high standard of ... In that the board of trustees owes fiduciary duties to both the fund and its members, meaning that the board is required under section 6 to act as trustee in respect of that property. In South Africa, trusts are governed by the Trust Property Control Act of 1988, and are registered by the Master of … Found inside – Page 149... the Act permitted trustees to divest or to reject investments in companies conducting business in South Africa without infringing their fiduciary duty. The Trustees administer the affairs of the Body Corporate. Found inside – Page 274The trustees have a statutory duty under s.5(1) Trustee Act 2000 to obtain and ... He objected to investments in South Africa because its government still ... Institute of Directorship of South Africa (IoDSA). A schedule setting out some of a Trustee’s duties is set out below: Duty Cross-reference to section of If you have been named as a trustee, you may already be acting in this capacity. Found insideIsmail and Amod . transfer of the property was taken in the 239 name of one partner , and transfer duty paid by him as ... -An abnames of the original members of the syndicate original native of South Africa is entitled to in trust for the company . It does so with specific reference in Chapter 2 to the origin and nature of trust law in South Africa, where Chapter 3 explains the legal position of the trustees’ fiduciary and statutory duties in South Africa. Trustees must also become familiar with the duties and obligations in law, particularly the Trust Property Control Act of 1988 (“the Act”). We look at the pros and cons of becoming one. It is, therefore, important that anyone accepting an appointment as a trustee understands the fiduciary duties associated with such an appointment and the responsibility they will be assuming in this regard. Check that the moneys received (levies) are banked and used correctly, 3. Found inside – Page 79The board of trustees was divided between executives of the trade union and ... by the trustees was in companies working in oil and also in South Africa. At any stage the owners in a general meeting can direct the trustees to undertake a course of action or to abort or alter any course the trustees may have embarked on and to this extent it is worth noting that the trustees are the servants and not the masters of the Body Corporate. Jackie Gray-Parker • Nov 16, 2015. Trustees’ duties and responsibilities - 59 -. Being a trustee in a sectional title complex can be fulfilling but is also a huge responsibility. which these statutory and common law fiduciary duties of the trustees in the South African and Namibian trust law compare and correlate. This includes any cleaning, staff management and security tasks that are required for the scheme. The following is a brief overview of a trustee's duties: Fiduciary Responsibility. that has duties embedded in legislation, namely the Trust Property Control Act18 and common law. 9 Care, diligence and skill required of trustee Cases (1) A trustee shall in the performance of his duties and the exercise of his powers act with the care, diligence and skill which can reasonably be expected of … One of the most important duties of trustees is to ensure that proper records of the trust’s financial affairs are kept (s 16 of the Act). JOHANNESBURG - The duties of trustees arise through the provisions of the Trust Property Control Act, the common law and the trust deed. All trusts should have an independent trustee in office. The Trust Property Control Act clearly stipulates the duties of trustees. It does so with specific reference in Chapter 2 to the origin and nature of trust law in South Africa, where Chapter 3 explains the legal position of the trustees’ fiduciary and statutory duties in South Africa. Background: There are over 1500 walled estates in South Africa, with over 200,000 residents and R480bn assets under management (ARC publication: Compliance Hub newsletter). A trustee must exercise the powers, entrusted to them by the STSMA, and the members of the body corporate, in the interest and for the benefit of the body corporate, and not exceed these powers. Found inside – Page 137(4) A trustee or custodian intending to retire from an appointment in terms ... is impracticable for a trustee or custodian to perform any or all its duties ... This is important to note where trustees decide to emigrate. The TPCA document contains an in-depth description of the act. A trustee is personally liable for breach of his or her fiduciary duties. It is the trustees in their official capacity who can be sued. Found inside – Page ivThe definition or description of a trust in the Hague Convention on the Law Applicable to Trusts and their Recognition of 1986 is not a part of domestic law ... Property Management, Property Rentals and Property Financial Services in South Africa We look at the pros and cons of becoming one. There are certain stipulations in the Sectional Titles Act regarding minute-taking and notice of meetings, but beyond that, trustees may regulate their meetings as it suits them. Jackie Gray-Parker • Nov 16, 2015. Fiduciary duties are also imposed on directors of companies in respect of their dealings with the company. Suretyship or loans by trustees. Role of trustee. 57 of 1988 (TPCA). Found inside – Page 230trustees held assets as investments, as considered in this case, ... Council trustees decided to divest from South African-based assets owing to concerns on ... Found inside – Page 146... 1999 ( 3 ) SA 173 ( C ) ( Single judge presiding ) Sexual orientation and ... meetings of trustees and performing his duties as a trustee — contention ... At any stage the owners in a general meeting can direct the trustees to undertake a course of action or to abort or alter any course the trustees may have embarked on and to this extent it is worth noting that the trustees are the servants and not the masters of the Body Corporate. Found inside – Page 258Decisions of the Supreme Court of South Africa (Cape of Good Hope Provincial Decision). ... the creditor should be brought to bear upon the important question of selecting a fit and proper person to carry out the duties of trustee in insolvency . Found inside – Page 31The trustee of the insolvent estate completed Trustee's account - Inspection by the transaction , paying out the sellers in full . creditors - Objections ... The preference duties -- Acquiescence of insolvent- granted by the statutes and customs of ... In the absence of such authority , how therefore not recognised by Roman - Dutch law ever , the trustee should sell by public auction ; ' in South Africa . Nor can ... Successor trustees only begin to act when the trustee of a trust dies or becomes unable to manage financial affairs due to incapacity. JOHANNESBURG - The duties of trustees arise through the provisions of the Trust Property Control Act, the common law and the trust deed. 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