[committee] Protecting the rainy day fund

[Scott Young]

On Wed, Oct 13, 2010 at 6:37 PM, Bob Adamson <bob at ucc.gu.uwa.edu.au> wrote:
>> - How do we flexibly store our money? How do we protect the money
>> from corrupt committees?
>
> Something like "Money will not be withdrawn from the principal amount of the
> fund without approval by special resolution of a General Meeting" and "all
> access to principal funds must require the signature of all executive
> members"

Sounds good to me. I'm not really sure that there's anything more you
can do, aside from leaving spending decisions to an unelected trustee.

>> - Each time the deposit matures, the interest rate could change. How
>> do we manage this?
>
> Well, we could put it in the hands of committee, with a 75% majority
> required, but make it so that a minumum percentage of income from it -
> enough to beat average inflation - must be reinvested.

It sounds like you're talking about different things here. I'm not
sure what the committee /could/ do if interest rates were to drop
significantly. The rates are generally comparable between different
banks, so what are we going to do -- seek out a higher return by
putting our money in a riskier investment?

Reinvesting part of the interest according to the CPI seems like a
good idea. Then again, so does reinvesting all of it and withdrawing
spending money if and when it's needed. The club seems to have
adequate cashflow as it is.

[SJY]