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CS Professional · CSR and Social Governance · Model Code for Meetings of Non-Corporate Entities

A charitable trust's deed prescribes a quorum and voting method for trustees' meetings that differs from the suggestion in a model code for meetings of non-corporate entities. The trustees are unsure which to follow at their next meeting. What is the correct position?

The trust deed and applicable law prevail. A model code for meetings of non-corporate entities is best-practice guidance, so it is followed only where the deed and the statute are silent or consistent with it. It cannot displace the entity's governing document.

  1. AThe model code prevails because it is more recent than the deed
  2. BThe trustees may choose whichever of the two they prefer for each meeting
  3. CThe trust deed and applicable law prevail, and the model code is followed only where they are silent or it is consistent with themCorrect
  4. DThe model code and the deed must be combined and the stricter requirement taken from each

Explanation

A model code for non-corporate entities is guidance on good practice. It cannot override the statute or the entity's governing document. Where those are silent, the entity may adopt the code's suggestions. Choosing freely or merging the two lacks any basis.

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