@Whale said:
The relevant Legislation in the ACT is silent on the subject isn’t it?I’m sure you can handle it Peter, but it sounds about as rigerous a process as our Federal Governments use to invest our tax receipts; wouldn’t pass muster in NSW where my reading of Sect 73 requires the O/C to make such decisions.
I’m Treasurer of our O/C and there’s no way that I’d be making a decision about how and where to invest our Owners’ hard-earned without first putting it to them at a General Meeting.
In the ACT the Act says the OC must open and maintain an account with 1 or more authorised deposit-taking institutions, pay all amounts received into that account and pay all amounts it spends out of that account. (An OC with 2 or 3 units may resolve by unopposed resolution to exempt itself). An OC may invest its money as it considers appropriate, subject to any direction by special resolution. (However, it must not invest in a mortgage of land and cannot ‘carry on a business except in the exercise of its functions’.
The Act also says that an EC can exercise the functions of the OC as it considers appropriate unless the act states that the decision must be made a particular way at a general meeting or a general meeting has directed the EC to act a particular way.
Putting all that together, if a general meeting passed a special resolution to invest the money a particular way then the EC would have to follow. However, in the absence of such a direction from a general meeting the EC can act as it considers appropriate. I would regard the AGM’s acceptance of the (audited) financial statements (showing several bank accounts and interest earned) as ample endorsement to continue with having several bank accounts, some earning higher interest and one working account with sufficient cash more readily available.
But that is the ACT, not NSW. I don’t know what the NSW Act has.