this is not the case . An Executive Management Agent ' s duties and responsibilities are set out in the Prescribed Management Rules Annexure 1 , rule 28 ( 1 - 4 ).
When a Body Corporate is unsuccessful in appointing an EMA for themselves , they can approach CSOS with motivation as to why an Executive Management Agent should be appointed , in which case CSOS will make a ruling in terms of the appointment . An appointment will then be made from their selected panel of Executive Management Agents . It sounds like a very convenient solution , but this should be considered very carefully .
The appointment of an Executive Management Agent replaces the rights , duties , and obligations of Scheme Executives . As such , I would always recommend that an appointment of this nature should be the very resort for a Sectional Title Scheme .
Situations where it will be necessary to employ an EMA , include the following :
• The Sectional Title Scheme / Body Corporate is completely dysfunctional
• Scheme Executives are unable to fulfill their duties
• Scheme Executives are not as knowledgeable as the law requires them to be
• No one indicates that they are willing to serve as Scheme Executive during the Annual General Meeting
In extreme cases like these , the appointment of an Executive Management Agent would make sense . However , owners have to realise that this removes certain rights from Scheme Executives . It means that a complete outsider will be making decisions about aspects like maintenance , levies , and the management of the budget . When this happens , owners and Scheme Executives have no further say in these matters .
SA Real Estate Investor Magazine NOV 2022 71