Liability and Fidelity Cover

PMR 29 (2)(b) “ to procure to the extent, if any, as determined by the members of the body corporate in a general meeting a fidelity guarantee in terms of which shall be refunded any loss of moneys belonging to the body corporate or for which it is responsible, sustained as a result of any act of fraud or dishonesty committed by any insured person being any person in the service of the body corporate and all trustees and persons acting in the capacity of managing agents of the body corporate;”

This rule is mandatory for owners and trustees!  With the recent CSTM fraud case, over 460 complexes lost all their funds and most of these complexes had no such cover as mentioned above. Trustees are cautioned to make sure this type of cover is put in place as not to be accused of negligence.

The views contained herein are that of Biccari Bollo Mariano Inc , a firm of attorneys specialising in Sectional Title Legislation. For more information on this issue please contact: