The role of the sponsor is limited in trustee remuneration. The Act gives mandate to members of schemes to approve the remuneration to be given to board of trustees. However, the board of trustees need to seek concurrence from the sponsor while drafting the remuneration guidelines that propose the remuneration to be given to trustees
Yes. Trustees can engage the services of experts to provide consultancy services or to co-opt experts to sit in the committees of the board to provide guidance to the board of trustees provided that such engagement shall be done through a competitive process and the process provided for in the scheme rules of the scheme.
Yes. Trustees can engage the services of experts to provide consultancy services or to co-opt experts to sit in the committees of the board to provide guidance to the board of trustees provided that such engagement shall be done through a competitive process and the process provided for in the scheme rules of the scheme.
Yes. Trustees can engage the services of experts to provide consultancy services or to co-opt experts to sit in the committees of the board to provide guidance to the board of trustees provided that such engagement shall be done through a competitive process and the process provided for in the scheme rules of the scheme.
Board of Trustees can take up an indemnity cover to protect them from risks associated in carrying out their duties. However, where they are found culpable of not exercising the fiduciary duty or contravening the Law they can be charged individually or collectively as trustees of the scheme.
Schemes should have a conflict-of-interest policy that guides the manner in which trustees deal/handle conflict of interest between the trustee and the scheme or between the service providers and the scheme. To ensure trustees record conflict of interests the trustee meetings should have an item on conflict of interest declaration.
There are no term limits for service providers. Board of Trustees are required to constantly review the performance of the service providers ensuring that they conform to the service level agreement. The Guidelines recommend that trustees should conduct a review of the external auditor at least once every five (5) years and where they replace …
Are there term limits for service providers? Specify the 5-year term limits for auditors Read More »
A trust secretary who has been appointed from the staff of the administrator of the scheme cannot vote in decisions made by the board of trustees. However, where one of trustees has been appointed the scheme secretary, they can vote.
A trustee can only sit on three (3) boards as a member and two (2) boards as the chairman of the board of trustees.
A good evaluation of a trustee’s performance in the board of trustees can be used as a basis of re-appointment but not a determinant. A trustee seeking re- election still needs to be elected or nominated by the members or the sponsor of the scheme.
