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?
Good day Paddocks,
If a scheme only has two trustees does the chairman still have a casting vote?
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.”
Can the financial trustee draft financial statements?
We have a Body Corporate who has appointed a trustee who owns his own accounting company to drafts the financial statements. Is this allowed?
There is nothing in the law that prevents this arrangement.
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?
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.
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.