An interim board has been appointed to the City of Logan Charitable Trust following the resignation of its last remaining directors.
Russell Postle, Matthew Lang and John Gilmore were appointed as interim directors last week.
But the resignations of the current five directors, who initially hoped to leave the board in July, will only take effect on 30 September.
Over the last year, the trust raised a meagre $1000 – less, if excluding interest.
The city’s councillors were not impressed and gave the trust three months to prove its ability to raise funds for local charities, otherwise it would face being “wound up”.
Instead, the trust’s directors – Sohana Maharaj, Keith Bailey, Christine Knappstein, Matthew Watts and Amanda Mather – tendered their resignations on 12 July to take effect on 31 July.
But legally they were not allowed to resign all at once, with the Corporations Act 2001 requiring there be at least one director.
The board agreed to stay on until September.
The newly appointed interim directors will help contribute to a review of the trust, which will aim to make the beneficial enterprise more productive.
Mayor Jon Raven said the review would ensure future boards were focused on raising money, not just distributing it.
“I identified that there was nothing in the charter, constitution or any documentation of the trust that compels [the board] to fundraise,” Cr Raven said.
“So of course they were taking all the money they were being given and handing it out to people.
“But we can do that without the charity – the point of difference for a charity is that they take the money they’ve got and use it to raise more and do good with it.”
Recruitment for new directors is ongoing.
“Council is confident that their expertise and experience will continue the establishment of a strong foundation for the Trust and ensure it can continue to serve the City of Logan community,” council said in a statement.
