Professional intervention for community schemes that need stronger management.
KZNBodycorp provides Executive Managing Agent services for schemes that require experienced, accountable and hands-on management support.
Some community schemes need more than ordinary managing agent support.
Many schemes are poorly managed without the care, consideration and due diligence they require. Every community scheme should be managed on sound business principles, with proper financial control, compliance and accountability.
The appointment of an Executive Managing Agent should be considered where a scheme is dysfunctional, financially distressed, or where trustees are unable or unwilling to fulfil their duties.
How an Executive Managing Agent may be appointed.
In terms of the Sectional Titles Schemes Management Act and prescribed management rules, an Executive Managing Agent may be appointed to perform functions and exercise powers that would otherwise be performed by trustees.
Special Resolution
The body corporate may, by special resolution, appoint an Executive Managing Agent to perform the functions and exercise the powers that would otherwise be performed by the trustees.
Application to CSOS
Members entitled to 25 percent of the total quotas of all sections may apply to the Community Schemes Ombud Service for the appointment of an Executive Managing Agent.
An Executive Managing Agent carries serious duties and obligations.
Once appointed, the EMA is subject to the duties and obligations of a trustee and must manage the scheme with the required professional level of skill and care.
Trustee-Level Duties
The EMA is subject to the duties and obligations of a trustee under the Act and the rules of the scheme.
Professional Skill and Care
The EMA is obliged to manage the scheme with the required professional level of skill, care and attention.
Fiduciary Obligation
The EMA has a fiduciary obligation to every member of the body corporate.
Property Inspections
The EMA must arrange for inspection of the common property at least every six months.
Regular Reporting
The EMA must report at least every four months to every member of the body corporate on the administration of the scheme.
Liability
The EMA may be liable for losses suffered by the body corporate due to failure to exercise the required skill and care.
What an EMA must report to owners.
The Executive Managing Agent must report to members on the administration of the scheme, the condition of the common property, the financial position of the funds and decisions made.
Ask About EMA ServicesRepairs and Maintenance
Proposed repairs to, and maintenance of, the common property and assets of the body corporate.
Condition of Common Property
Matters considered relevant to the condition of the common property and the assets of the body corporate.
Fund Balances
The balance of each administrative and reserve fund, together with reconciliation statements for each fund.
Expenses and Decisions
Expenses of the body corporate and a brief description of the date and nature of decisions made by the EMA.
Stronger accountability, clearer oversight and professional management.
The appointment of an Executive Managing Agent can provide structure, professional oversight and practical intervention where a scheme has become difficult to manage.
KZNBC is geared to provide EMA services.
Community schemes in distress should consider the appointment of an Executive Managing Agent where stronger professional management is needed.
KZNBC has experience in turning around community schemes in financial distress and can provide flexible services tailored to the requirements and budget of the scheme.
We do not believe in a one-size-fits-all approach. Every scheme has its own challenges, risks and operational requirements.
Request A ConsultationIdeal for schemes facing:
Need to discuss Executive Managing Agent services?
Contact KZNBodycorp for an obligation-free consultation and quotation for your community scheme.