CSOS Mandatory requirements for scheme executives

The CSOS was established in terms of the Community Schemes Service Act, 2011 (Act 9 of 2011) to regulate the conduct of parties within community schemes and to ensure their good governance. Enforcement of a community scheme’s rules and the governing legislation are the responsibility of the elected scheme executives, who must ensure that these are adhered to by the residents in the community scheme and that they are all times promoting good governance in the scheme.

The mandatory requirements for scheme executives for the promotion of good governance in a community scheme are found in
the regulations of the CSOS Act in regulation 14(1) and 14(2) where the regulations state that:

Regulation 14.1 A scheme executive must –

  1. take reasonable steps to inform and educate himself or herself about the
    community scheme, its affairs and activities and the legislation and governance documentation in terms of which the
    community scheme operates
  2. take reasonable steps to obtain sufficient information and advice about all.
    matters to be decided by the scheme executives to enable him or her to make conscientious and informed decisions.
  3. unless excused by the chairperson of the scheme executives on reasonable
    grounds –

    1. attend all meetings of the scheme executives; and
    2. attend the community scheme’s annual general meeting if it holds such a meeting
  4. exercise an active and independent opinion with respect to all matters to be decided by the
    scheme executives; and
  5. exercise due diligence in relation to any business of, and necessary preparation for and attendance at meetings of,
    the scheme executives or any committee to which such scheme executive is appointed.

Regulation 14.2

The obligations of a community scheme executive in terms of sub-regulation (1) are in addition to and do not derogate
from the fiduciary obligations of a scheme executive in terms of the common law or any applicable statute.

Information about the CSOS, their address and contact details, and the role the CSOS plays in the management of
community schemes may be found on the CSOS website – www.csos.org.za


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