After the merger of the South Australian company Elder, Smith & Co Limited and the Victoria Company Goldsbrough Mort & Co Limited, to form Elder Smith Goldsbrough Mort Limited, employees of the group were members of a number of funds.
Elder Smith & Co Limited had established a contributory pension fund for male officer in 1913 and a separate non-contributory fund for female staff members during the second world war, while Goldsbrough Mort & Co Limited had established a contributory lump sum retirement fund for both male and female staff Members in 1918.
This fund was called the “Officers’ Provident Fund”.
However the contributory lump sum fund did not provide equivalent benefits to pension funds established by competitors such as The Provident Fund and so a non-contributory Supplementary Pension Fund was established to increase retirement benefits for long serving employees.
The Goldsbrough Mort Funds were closed to new members on 1 January 1963.
The Power of Amendment
The Officer’s Provident Fund
Terms of the Trust declared in the State of Victoria as witnessed by a Deed dated 7 August 1918 in the State of Victoria and subsequently amended provided:
“Clause 43: The Trustees, with the consent of the Directors of the Company and of the proportion of the Contributors ascertained as specified in Clause 42 shall have power to repeal alter or amend any Clause in these presents, or to add any new Clause in these presents, or to add any new Clause or provisions thereto.”
This is an important difference to the Power of Amendment provided in the original Trust Deed of the The Provident Fund established on 23 December 1913. Here the Power of Amendment was provided to the Directors of the Company subject to the consent of a majority of the trustees. There was no requirement to have the Contributors (ie Members of the fund) consent to any proposed amendments.
The Trust Deed of the Supplementary Pension Fund contained a joint Power of Amendment in Clause 40 were:
“40. The Company and the Trustees may at any time by Deed under Seal executed by the Company and the Trustees alter or modify all or any of the provisions contained in this Deed.”
In this case the legal person of the Company had been provided with the Power of Amendment when executed under the Company’s seal and not the natural person Directors executed under their own signatures.
The Power of Amendment was jointly held with the Trustees and was not simply subject to the consent of the Trustees.
The regulations of these funds can be found on the following links:
This tab updated on 30 May 2015