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

Kaveri Charitable Trust's trust deed requires 14 days' notice for trustee meetings. The model code is adopted as a guideline, and it suggests 7 days' notice. The managing trustee wants to give only 7 days' notice, citing the model code. What is the correct position?

The trust deed and applicable law prevail, so 14 days' notice is required. A model code is voluntary guidance and cannot override a binding requirement in the governing instrument or statute. Giving only 7 days' notice would breach the deed and could make the meeting's decisions open to challenge.

  1. AThe model code prevails, so 7 days is valid
  2. BThe trust deed and applicable law prevail over a non-binding model code, so 14 days' notice must be givenCorrect
  3. CEither period may be chosen at the managing trustee's discretion
  4. DNotice is not needed for trustee meetings

Explanation

A model code is guidance, adopted voluntarily. Where the governing instrument or statute prescribes a requirement, that binding requirement overrides the code. Using 7 days would breach the deed.

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