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

Shanti Charitable Trust's trust deed says that trustees shall meet twice a year and requires seven days' notice of a meeting. The trustees wish to adopt a model meeting code that prescribes 14 days' notice. How should the conflict be resolved?

The trust deed and applicable law prevail over the model code. The code is guidance for good governance and may be followed only where it does not conflict with the deed or statute, so the seven-day notice in the deed governs this trust.

  1. AThe model code prevails because it is a best-practice standard
  2. BThe trust deed and applicable law prevail; the model code can be followed only to the extent it does not conflict with themCorrect
  3. CThe longer period applies automatically under company law
  4. DNeither applies, and meetings need no notice

Explanation

A model code is a guidance framework, so the governing law and the constitutive document of the entity take precedence. The code can fill gaps or be followed where consistent with the deed. The first option is wrong because the code has no overriding force over the deed.

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