can an OMC make a charity donation to another organisation if it has the funds?

[lantus]

can an OMC make a charity donation to another organisation if it has the funds but wasn't included as a budget item in that years approved budget?

 

[mf1]

can an OMC make a charity donation to another organisation if it has the funds but wasn't included as a budget item in that years approved budget?

Why on earth would an OMC be making charitable donations?

Let individuals make charitable donations. Frankly, if I was an owner, I'd be furious if my contributions for maintenance and sinking funds were being used for anything else!

mf

 

[Time]

What charities are they donating to? Political parties?

 

[lantus]

a local project to enhance the area and of great benefit to the residents and potentially property values and desirability of the overall area.

My consideration is that the company cannot do this but just want to throw it out there.

 

[Time]

The company can do nothing without shareholder approval.

 

[Joe_90]

The company can do nothing without shareholder approval.

The directors have delegated authority from the members, if they wish to make a contribution to a local community development group, that they feel will benefit the residents then of course they can do it. If the members don't like what they have done then the members get rid of the directors at the AGM.

Personally I can't see, unless this is a very well run OMC where all subs are paid and they is a large surplus, how making such a contribution could be considered by the directors but that's a different issue.