By the Paddocks Club team

Below are examples of two questions on the Paddocks Club discussion forum, to show you what is available to our Community members!

Does a casting vote apply when there are only two trustees?

Member’s question:

Good day Paddocks,

If a scheme only has two trustees does the chairman still have a casting vote?

Thank you

Graham’s answer:

Dear member,

No, Prescribed Management Rule 14(2) states, “(2) Each trustee is entitled to one vote; provided that if the deliberative votes of the trustees, including that of the chairperson, are tied, the chairperson has a casting vote, unless there are only two trustees.

Regards
Graham

Can the financial trustee draft financial statements?

Member’s question:

Hi Graham

We have a Body Corporate who has appointed a trustee who owns his own accounting company to drafts the financial statements. Is this allowed?

Graham’s answer:

Dear member,

There is nothing in the law that prevents this arrangement.

Kind regards
Graham

Member’s additional question:

Thank you Graham.

In addition, can this trustee then also see to the bookkeeping of the body corporate and receive remuneration and draft the financial statements to be audited by an external auditor?

Graham’s answer:

Dear member,

If the trustee is not an owner, then yes. But a contract would be required and the costs would have to be covered by the scheme’s existing budget.

If the trustee is an owner, yes if none of the work overlaps with what a trustee usually does. Again, the payment needs to have been budgeted.

Kind regards
Graham


Article reference: Paddocks Press: Volume 17, Issue 4.

Graham Paddock is available to answer questions on the Paddocks Club discussion forum for Community members. Get all your questions answered by joining Paddocks Club.

This article is published under the Creative Commons Attribution license.

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