Sunday July 2012

Business MeetingSummary – Scholarships available for AICD course.

We would like to inform you of an opportunity that may be of interest to you.

Perpetual, one of Australia’s largest and most experienced managers of philanthropic trusts, is pleased to invite board members and chairs of charitable organisations to apply for scholarships through the Australian Scholarships Foundation. Over 400 places nationally will be awarded at the highly regarded Australian Institute of Company Directors’ Not-for-Profit Board and Chair courses.


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ACNC

Summary – The draft Australian Charities and Not-For-Profits Commission (ACNC) Bill has been released.

The Assistant Treasurer, the Hon David Bradbury MP, has referred the draft ACNC legislation to the House of Representatives’ Standing Committee on Economics for an inquiry.

The Minister released the Exposure Draft of the legislation and explanatory materials on 6 July 2012.

The House Standing Committee on Economics has now invited interested persons and organisations to make submissions addressing the terms of reference by Friday, 20 July 2012.


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Woman confused while filling out tax formSummary – California couple donated real estate worth USD18 million to a charity but their failure to complete the Internal Revenue Service (IRS) form correctly lead to their loss of the entire associated tax deductions.

California couple, Joseph and Shirley Mohamed, donated real estate worth USD18 million to a charity in 2003 and 2004 but their failure to follow instructions on how to document their donations when completing the Internal Revenue Service (IRS) form lead to a loss of the entire associated tax deductions.

Joseph and Shirley Mohamed set up a charitable remainder trust and donated six (6) properties to it. Under the tax relief allowed to these types of trusts, the couple would have been entitled to USD4.2 million in immediate charitable contribution deductions and another USD15 million in future years.


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multitasking manSummary – The High Court has recently ruled on the obligations of company officers wearing two hats.

The High Court has recently shed further light on the obligations of care and diligence in respect of company officers who occupy multiple roles.

In the case of Peter James Shafron v Australian Securities & Investments Commission the High Court held that Mr Shafron, contravened s.180(1) of the Corporations Act 2001 (Cth) (Act) by failing to discharge his duties as an officer of James Hardies Industries Limited (James Hardie) with the degree of care and diligence that a reasonable person in his position would have exercised.


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person signing a willSummary – Care needs to be taken for gifts to charities and not-for-profit entities where an officeholder for the time is being appointed as executor.

Often Will makers when leaving a substantial gift to a charity or not-for-profit entity wish to appoint an office holder in the organization as executor of the Will.

Such an appointment was reviewed in the recent Supreme Court of South Australia case in the Estate of Chomiak [2012] SASC 27 (29 February 2012).  The deceased, Anna Chomiak, died in 2010, aged 93.  Her Will, which was prepared by a solicitor, nominated the “priest in charge for the time being of the Ukrainian Catholic Church at Wayville” as her sole executor.


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