Every year accountants pull out the compliance toolkits of minutes, resolutions, declarations, consents and all other variations of the paperwork that keep regulators happy.
Here is where it gets absurd. Documents prepared by Person A, addressed to Person A and officially signed by Person A.
And once you notice it, you see it everywhere. Companies, Trusts and of course SMSFs.
- Companies have the director resolving to approve their own appointment as director.
- Trusts have the trustee formally agrees with the trustee that the trustee will act as trustee.
- SMSFs have trustees writes to themselves confirming they will follow rules they already know exist.
It’s compliance jokes at its finest. A paper trail of conversations no one ever actually had except on paper with themselves.
We could save everyone the time and just say: “Dear Me, I agree with myself. Signed: Me.”
Category: NEXT ZERO