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hello sir,
“gratituous payments must be disclosed to all members but approved, if not approved then directors hold payments on trust for the company”
what does ” holding payment on trust for company” means?
thank you
Holding something on trust for someone means that the asset that you hold is not yours to use freely … yet. You’re simply holding the asset until such time as a contingent uncertainty has crystalised. In this case, the contingent uncertainty is the members’ approval that is needed in order that the gratuitous payment may then legally pass to the director in compensation for that director’s loss of office
If the members fail to approve the payment, the unfortunate director that has lost his / her office will need to repay that money to the company
OK?
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