[committee] Resolution to recognise term deposit as investment (was: No subject)
Andrew Adamson
bob at ucc.gu.uwa.edu.au
Tue Mar 12 10:01:13 WST 2013
I think that if term deposit rates drop so much then the club should be
looking at other options for where to put the money - and that should be
via a general meeting. This won't happen for another 2 or 3 years as the
current term deposit is on a 60 month term.
As for other people's attempts - they look good, with the $1000 thing the
intent was more "none of the interest money can be spent until $1000 has
been added to the investment that year". This can either be put in by
committee in one go at the start of a year, or can simply be the first
$1000 of interest in a year. The worst case scenario is that committee
can't spend the first 4 months interest each year. I don't think it's a
good idea to force all interest generated back into the investment - just
enough to offset inflation and maybe grow it a little bit.
/me heads back to work
Andrew Adamson
bob at ucc.asn.au
|"If you can't beat them, join them, and then beat them." |
| ---Peter's Laws |
On Mon, 11 Mar 2013, James Cox wrote:
> Seems a bit silly to me to require a hapless committee to call a SGM
> just to ratify a new term deposit should general interest rates fall
> more than one percent over two years' time.
>
> Surely clause 2.3 is enough to encourage research and good financial
> stewardship?
>
> [RME]~Coxy
>
>
> On Mon, Mar 11, 2013 at 8:06 PM, Matt Didcoe <mattman at ucc.gu.uwa.edu.au> wrote:
> > I've had another crack... 2.3 - policy needs clarifying
> >
> > This resolution is made in accordance with the University Computer Club
> > Investments Policy as detailed in section 1 of Appendix 1 of the
> > Constitution.
> >
> > The University Computer Club Inc. hereby resolves to set aside the sum
> > currently (that is, at the time the resolution is approved at a General
> > Meeting) residing in the term deposit held in the name of the Club with its
> > nominated financial institution as an investment as follows:
> >
> > 1. The initial sum shall remain in the term deposit until maturity or until
> > the Club resolves otherwise at a General Meeting.
> >
> > 2. At maturity of the term deposit a new term deposit must be started under
> > the following conditions:
> > 2.1 The new interest rate must be no less than the previous interest
> > rate by more than one percent.
> > 2.2 The term of the new deposit must be no less than twenty four
> > (24) months.
> > 2.3 The Committee must select the policy with the highest available
> > return on investment.
> >
> > 3. Each financial year the Committee must set aside a minimum amount of
> > money to be added to the investment.
> > 3.1 The minimum amount contributed shall be the greater of $1000, or
> > all interest earned from the investment in that year.
> > 3.2 These funds must either be added directly to the term deposit,
> > or put into a reserve account until such time as they can be added to the
> > term deposit.
> > 3.2.1 Funds in the reserve account are considered part of
> > the investment.
> > 3.2.2 The current value of the cash reserve account shall be
> > considered as part of the initial investment and shall not count towards the
> > 2013 contribution.
> > 3.2.3 The Committee shall have the power to move funds from
> > the reserve account to another bank account so as to maximise the interest
> > generated by those funds.
> >
> > 4. Access to the investment, including the reserve account, will require the
> > signatures of at minimum two members of the Executive.
> >
> > 5. The funds in this investment may only be accessed in accordance with the
> > terms of this resolution, or a subsequent resolution passed in a General
> > Meeting.
>
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