As one of 3 Directors of a Self Managed Super fund a Directors resolution was signed on 17/7/2020.
One paragraph reads as follows:
"The Arbitrators fee will be paid by the fund on the current weighted average basis”.
At the time the Resolution was signed the members balances were approx. Me 35% Other 65%
The arbitrators invoice of $18,260 presented on 12 April 2020 the other party had mostly rolled out of the fund: Approx. Me 95% Other 5%.
The individual at the accounting firm DBJ is of the opinion that I should bare 95% of the arbitrators cost.
QUOTE: "I am of the opinion we have completed the work correctly”
QUOTEL”We have applied the weighted average method consistently since the inception of the fund. We do not believe that any adjustment needs to be made.
I do not beleive the above arguments are valid.
His position to me is untenable it’s as if he reads the agreement to say:
"The Arbitrators fee will be paid by the fund on the FUTURE weighted average basis”.
My position
The Directors Minutes indicate the intension to pay a future cost based on current weighted averages as dated and signed, the agreement is binding on the Directors and the accountant is obliged to follow the Directors Resolution.
The accountants refusal to amend the members benefit statements to reflect the Directors Resolution creates a potential loss to me of approx. $8,500.
My question is:
Which is the correct legal interpretation: Date of minutes or date of invoice?
One paragraph reads as follows:
"The Arbitrators fee will be paid by the fund on the current weighted average basis”.
At the time the Resolution was signed the members balances were approx. Me 35% Other 65%
The arbitrators invoice of $18,260 presented on 12 April 2020 the other party had mostly rolled out of the fund: Approx. Me 95% Other 5%.
The individual at the accounting firm DBJ is of the opinion that I should bare 95% of the arbitrators cost.
QUOTE: "I am of the opinion we have completed the work correctly”
QUOTEL”We have applied the weighted average method consistently since the inception of the fund. We do not believe that any adjustment needs to be made.
I do not beleive the above arguments are valid.
His position to me is untenable it’s as if he reads the agreement to say:
"The Arbitrators fee will be paid by the fund on the FUTURE weighted average basis”.
My position
The Directors Minutes indicate the intension to pay a future cost based on current weighted averages as dated and signed, the agreement is binding on the Directors and the accountant is obliged to follow the Directors Resolution.
The accountants refusal to amend the members benefit statements to reflect the Directors Resolution creates a potential loss to me of approx. $8,500.
My question is:
Which is the correct legal interpretation: Date of minutes or date of invoice?
