Signing off end of year accounts, incorporated charity.

At a committee meeting held on 3rd October 2007 the trustees / directors agreed to review and report back any queries regarding the end of year accounts by 15th October 2007.

It was agreed that a committee meeting be held immediately prior to the AGM on 7th November 2007, with the single item agenda to agree and sign the accounts. At the committee meeting held before the AGM, the chairman and treasurer (directors) were present with the financial controller, centre manager (staff) and the auditor. All present were in favour of signing the accounts, however the meeting was not quorate having only 2 directors with a quorum being 3. Later 2 more directors arrived and announced that they did not agree to the accounts being signed. Their reason seemed to be that the asset register did not include nil value items and items written off.

The accountant explained about assets, depreciation etc. The 2 directors were adamant that the accounts should not be approved until this asset register was produced. The meeting fell into disorder and was not formally closed.

The AGM was then opened and the Treasurer stated that the accounts had not been signed but proceeded to present accounts and make copies (not marked draft) available to the Members and the general public present.

The governing document states that “the chairman shall have a second or casting vote.”

1. At this late stage can the chairman use his casting vote and can it be minuted that the accounts were agreed?

2. Can the chairman declare that the dissenting trustees are out of order having not raised their queries by the agreed date and direct them to vote in favour of the resolution to agree and sign the accounts? There is nothing in the governing document that indicates either way.