Establish and document corporate governance. Ensure that the Board membership corresponds with the Diocesan Council membership and that Board minutes record attendance, the Ruling Bishop’s presence and how votes were cast. Because a Board decision requires a majority including the Ruling Bishop’s vote and a quorum is seven including the Ruling Bishop, meeting arrangements should be planned so those numeric and participatory requirements are met (s 4(2), (4)-(5)). Where electronic participation is used, preserve audio records and contemporaneous minutes showing participation consistent with s 4(6).
Observe consistency with the Statute and Parish By-laws. Before exercising a function that affects Parish property, document that the proposed action is consistent with the Statute and the relevant Parish By-laws as required by s 5(1A). Keep written legal advice or a formal resolution applying the Statute and parish by-laws to proposed actions.
Make and maintain by-laws properly. If the Trust adopts by-laws under s 6, ensure they are not inconsistent with the Act or the Statute, are adopted under proper resolution, and are certified and sealed if intended to be relied on as evidence (s 6(1)-(3)). Remember by-laws do not bind non-members (s 6(4)); therefore include contractual terms or separate agreements for third parties where external binding effect is required.
Use formal delegation processes. Any delegation must be by resolution and must not purport to delegate the power of delegation or the power to make by-laws (s 7). Keep written entries in a delegation register specifying the function delegated, the delegatee, the duration, and the limits of the delegation; ensure by-laws, if they prescribe delegates, are adopted first.
Follow Trustee Act investment rules. When making investments, document compliance with the Trustee Act 1925 standards and ensure that any trust instrument forbidding particular investments is observed (s 9(1)(b)). For pooled investments, maintain apportionment records for income and losses as required by ss 9(2)-(4).
Document advances and securities. When the Trust makes advances out of trust funds to Diocese or Parishes, treat those advances as investments with a written loan agreement specifying interest rates fixed by the Trust, repayment terms and any charge over assets if applicable (s 10). Record as a registered charge where appropriate and maintain resolutions authorising the advance.
Use proper seal procedure. Keep the Trust seal in safe custody as required by s 17(1). Affix the seal only in accordance with a Trust resolution and in the presence of at least two Board members, with their signatures attesting to the affixing (s 17(2)-(3)). Maintain a sealed instrument register identifying sealed documents and attesting signatures.
Utilise agent and attorney mechanisms correctly. If the Trust empowers an agent or attorney under s 19, do so in a writing under the Trust seal specifying the specific matters for which the agent is empowered. Ensure deeds executed by agents carry the agent’s seal and the requisite written authority under seal exists on the Trust’s records.
Prepare certificates for registration and proceedings. For land registration under the Real Property Act 1900 and for evidentiary use in litigation, prepare certificates under the seal of the Trust that comply with s 20. Keep supporting resolutions and minutes that justify the contents of the certificate, because s 20(2) makes such a certificate conclusive in registration applications.
Use receipts that exonerate payers where intended. When the Trust receives money and the payer requires exoneration, issue receipts under the Trust seal or signed by at least two Board members, or by persons authorised in writing for that purpose, to achieve the exoneration available under s 21. Keep contemporaneous records of identification and authority for signatories.
Record trust variation deliberations. Where the Trust contemplates varying a trust under s 12 on grounds of impossibility or inexpediency, keep detailed minutes explaining the factual circumstances that gave rise to the conclusion, the alternative trust declared and the reasons why the new application is as nearly as possible consistent with the original purposes. Ensure that the resolution complies with the procedural requirements of the Trust and that records exist to justify the exercise of the s 12 power should beneficiaries challenge it.
Handle vesting and transitional formalities. For property vested in the Trust under s 15, rely on the statutory vesting without conveyance but ensure that title registers and records are updated by using the certificates contemplated in s 20 and by making any Real Property Act applications with supporting material. Note that any existing reservations, mortgages, charges, encumbrances, liens or leases that affected the property before vesting remain effective (s 15(2)). Consider obtaining legal confirmation that encumbrances have been accounted for.
Leverage the stamp duty exemption carefully. Where an instrument is executed only for the purpose of giving effect to s 15 or is ancillary or consequential to the operation of s 15, document that purpose clearly to justify any claim to the stamp duty exemption under s 15(4). Seek revenue advice before relying on the exemption for broader transactions.
Manage indemnity exposures. Recognise that Board members and other authorised persons have statutory indemnity rights under s 23. For internal controls, consider maintaining insurance where permissible and adopt robust conflict of interest and investment policies to limit recourse to trust assets for indemnity claims. Keep minutes and file notes showing that actions were taken in good faith and under proper authority.
Train conveyancers and counterparties on statutory formality. Inform conveyancers, lenders and counterparties about the Act’s certificates, receipt and non-inquiry provisions so they can rely on the specified formalities. Where counterparties seek additional comfort, be prepared to provide supporting resolutions, certified copies of by-laws and evidence of authorisation.
Keep comprehensive records. Because many of the Trust’s powers and third-party protections turn on formal documents (resolutions, sealed certificates, delegation writings, receipts, by-laws), develop a records management protocol that archives originals or certified copies of all sealed instruments, board minutes, delegation instruments and certificates to support both registration and litigation defences.
Engage legal advice for complex transactions. For mortgages, charges, complex variations of trust under s 12, large investments, or disputes about the scope of the Statute or Parish By-laws, obtain targeted legal advice. The Act provides statutory authority for many actions but leaves significant interpretive and equitable questions to specialists.
By following these compliance steps directly tied to the Act’s provisions (noted above with section references), Board members, parish officers and counterparties can reduce transactional risk, support title and registration processes, and document proper authorisation for property and financial dealings.