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

Sagar Trust's deed is silent on the quorum for trustee meetings. Its Company Secretary advisor says the model code is only persuasive, yet recommends adopting a quorum rule. Which approach is most appropriate?

The trust should first check applicable law and, if nothing binding applies, formally adopt the model code's quorum recommendation by trustees' resolution. Silence in the deed does not allow meetings without a quorum, and the Companies Act does not automatically govern a trust.

  1. ATreat any meeting as valid regardless of attendance, since the deed is silent
  2. BCheck applicable law first, and if nothing binding applies, adopt the model code's quorum recommendation through a formal resolution of the trusteesCorrect
  3. CWait for a court to prescribe the quorum
  4. DApply the Companies Act quorum rule automatically as mandatory law

Explanation

Silence in the deed does not mean no quorum is needed. The proper step is to check the governing statute, then fill the gap by formally adopting the model code's suggestion by resolution. The Companies Act does not bind a trust, and waiting for a court is impractical.

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