Consumer Information

Author:  Wesley Graham – STBB
15 March 2016

TWO HATS:  SCHEME’S TRUSTEE ALSO ITS CARETAKER

Yes, such an appointment is perfectly possible and valid, provided (i) the trustee is also an owner; (ii) the appointment is made after a trustee resolution by majority vote to that effect (the relevant trustee may however not vote); and (iii), two trustees sign the contract with the trustee-caretaker. Caution however dictates that:

  • such contract addresses the possible blurring of lines between the individual’s performance of trustee and caretaker duties, especially as the former is usually performed ex gratia and the latter for remuneration; and
  • for the sake of good governance, the contract should also address, in the circumstances, the obligatory trustee duty to supervise body corporate employees.

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