Residential Estate Industry Journal 3 - Page 58

INDUSTRY FOCUS PAGE 56 arabella country estate services traditionally supplied by municipalities, is done in a three-stage process designed to but are unable to do so because there are develop a 20-year plan, underpinned by a robust no new rules of the game. The predictability set of verifiable facts and driven by a coherent of the past, when decision-making processes strategy, that enables long-term budgeting and were procedural and routine, has become forecasting to be done. This process is currently unpredictability, in which uncertainty prevails being rolled out in conjunction with ARC to all and anger mounts. chapters across the country. It is also being made available to other specialised interest Then, on top of it all, comes a thing called the groups that have to manage real estate in one King IV Report on Corporate Governance, which form or another, increasingly embedded in a raises the issue of the fiduciary responsibilities new regulatory and institutional landscape that of directors, trustees and managing agents. is changing so fast that it has not yet been Central to these are ethics, responsibility and formalised in policy and law. risk. What this means is that anyone holding fiduciary responsibility, even as an unpaid trustee The good news about this process is that while or director, has to make sense of this growing it de-risks the HOA and those holding fiduciary complexity under the persistent shadow of the responsibilities defined by King IV, it also threat of liability in terms of King IV for failing to protects the investment value of the real estate. act responsibly when acting on behalf of others. Conducted systematically it also claws back   control over water quality, which is increasingly Heavy stuff indeed! So where is the good at risk from dysfunctional municipalities. news? This comes in the form of a structured intervention in which a team of professionals Prof. Anthony Turton helps the HOA and board to transition from an initial high-risk, low-information posture to a future low-risk, high-information posture. This