Establish and maintain proper records: Under section 14, the trustees must hold regular meetings and keep minutes of proceedings and resolutions. These minutes must be available for inspection by the General or his delegate. Additionally, the trustees must keep a register of all lands vested in the body corporate, clearly indicating which are held for general purposes and which for Social Work. This register is essential for ensuring compliance with the ring‑fencing requirements of section 10 (no cross‑collateralisation of general debts on Social Work property). It also assists donors and the General to understand how property is allocated.
Use the common seal correctly: The seal must not be affixed to any document except under authority of a trustees’ resolution. The affixing must be attested by at least two trustees, or in such other way as the trustees from time to time appoint (s 6(1)). A document so executed is prima facie evidence and, in favour of the Crown, registrars and value dealers, conclusive evidence that it was properly executed (s 6(4)). The trustees should adopt a formal seal policy and ensure that all contracts under seal follow this procedure; contracts that need not be under seal may be made in writing signed by a person acting under authority, or even by parol if permitted by general law (s 6(2)).
Borrow and mortgage within trust boundaries: Before borrowing, the trustees must identify whether the property to be charged is held for general purposes or Social Work. A debt for general purposes must never be secured on Social Work property (s 10(2)). Any money raised on Social Work property may be used only for Social Work (s 10(3)). A prudent trustee will obtain legal advice on the source of funds and the purpose of the borrowing, and will ensure that any mortgage documentation clearly states the purpose. For external lenders, the protection of section 12 will apply if they act in good faith and obtain a receipt, but the trustees themselves may face internal consequences if they exceed their powers.
Obtain General’s consent for trust variations: If the trustees wish to enlarge, modify, vary or alter the trusts on which any property is held (which would change the purpose from general to Social Work or vice versa, or otherwise alter the beneficial trusts), they must obtain the General’s written consent (s 9(2)). For property that is already subject to a specific express trust (not just the Deeds Poll), the power to vary is limited to what that trust itself would have permitted (s 9(4)). The trustees should document the consent and the resolution approving the variation.
Lodge vesting applications under s 22: When the body corporate acquires a mortgage, charge or estate in land under the Torrens system or the Land Administration Act 1997, the trustees should promptly apply to the Registrar of Titles or the relevant chief executive to have the interest recorded. The application must include proof of the facts and payment of fees equivalent to a transfer (s 22). This ensures that the title register matches the statutory vesting, which facilitates future dealings.
Maintain officer appointments: The trustees may appoint officers such as a secretary. A certificate under seal of the appointment is conclusive evidence in favour of registrars and value dealers (s 17(1)). The secretary can then issue certificates as to who the current trustees are and as to resolutions, and those certificates are conclusive evidence in the same capacity (s 17(2)). This system allows the trust to deal efficiently with external parties. The trustees should ensure that officer appointments are formally documented and that the seal is used correctly.
Dealings with third parties - rely on the statutory protections: The trustees can transact with confidence that mortgagees, purchasers and lenders are protected by section 12, which exonerates them from seeing to the application of money. But the trustees should still provide a receipt in writing, as that triggers the protection. For purchasers, the conveyance under section 11 frees the property absolutely from the trusts, so the trustees must be satisfied that the sale is proper and that any trust for Social Work proceeds is complied with (s 13). The trustees should keep separate accounts for Social Work property to ensure traceability of proceeds.
Handle testamentary gifts correctly: When a will or other instrument gives property to the Salvation Army in Western Australia, the trustees should treat it as a gift to the body corporate (s 18). If the gift carries a specific direction (e.g. for a particular corps), the trustees must respect that direction insofar as it is capable of taking effect. They should record the donor’s intent and manage the property accordingly. If the gift was made before the Act but taking effect after, or after the Act, and was not to specific trustees, it vests directly in the body corporate by virtue of section 19. The trustees may need to call for transfer, conveyance or delivery of the property (s 18(c)).