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What am I not seeing here?
Old 05-06-2006, 01:29 PM   #1
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What am I not seeing here?

I serve on an endowment board and part of the bylaws read as thus, "The investment committee shall have the ability to make transactions in an amount less than $50,001. Any investment in excess of $50,000 shall require Board approval."

I read this as a befuddling statement and asked about it to the Board and they responded that it is correct.

My question is how can it be correct performed as it's written? Am I just dense?
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Re: What am I not seeing here?
Old 05-06-2006, 01:34 PM   #2
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Re: What am I not seeing here?

To have a little fun suggest an investment of $50,000.50.
That fifty cents might make the earth spin backwards.
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Re: What am I not seeing here?
Old 05-06-2006, 01:43 PM   #3
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Re: What am I not seeing here?

Yes, I think it's poorly written. Is this common? Any tips for a better clause?
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Re: What am I not seeing here?
Old 05-06-2006, 02:14 PM   #4
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Re: What am I not seeing here?

I think that those two numbers, $50,001 and $50,000 are odd, and are distracting you from the real meaning.

I assume they mean that:

A) the investment committee can make transactions up to (and including) $50,000 *without* Board Approval.

B) the investment committee needs Board Approval to make transactions over $50,000.

The odd wording may have been an attempt to avoid excluding $50,000 exactly, but that is normally done by saying '$50,000 and more require approval', or '$50,000 and less do not require approval'.

Odd, but still better than some ad copy ' up to 50% and 60% off list price, or more!'.

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Re: What am I not seeing here?
Old 05-06-2006, 02:16 PM   #5
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Re: What am I not seeing here?

Quote:
Originally Posted by larry
"The investment committee shall have the ability to make transactions in an amount less than $50,001.* Any investment in excess of $50,000 shall require Board approval."

I read this as a befuddling statement and asked about it to the Board and they responded that it is correct.

My question is how can it be correct performed as it's written?* Am I just dense?
It's just redundent. *You may spend up to and including $50k whether that's less than $50,001 or not more than $50,000 doesn't matter. *The fact they didn't take it to the penny is inconsequential.

So, yes it can be performed. *No, you're not dense. *Now, get to work on the business of the endowment board! * *

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Re: What am I not seeing here?
Old 05-06-2006, 02:21 PM   #6
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Re: What am I not seeing here?

Damn lawyers can't write.
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Re: What am I not seeing here?
Old 05-06-2006, 03:36 PM   #7
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Re: What am I not seeing here?

Thanks for the advice. It seems to me that things should be a little clearer and that some things should be more clear when things aren't understood. I never not enjoy this board!
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Re: What am I not seeing here?
Old 05-06-2006, 06:05 PM   #8
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Re: What am I not seeing here?

Quote:
Originally Posted by Martha
Damn lawyers can't write.
Does that mean they don't get paid?
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Re: What am I not seeing here?
Old 05-06-2006, 06:39 PM   #9
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Re: What am I not seeing here?

That statement looks like it wasn't written by a lawyer, or at least not a good lawyer.

The first thing that came into my head was "If I want to do a 120k transaction all I have to do is break it up into three 40k transactions and wala no approval needed".
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Re: What am I not seeing here?
Old 05-06-2006, 08:24 PM   #10
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Re: What am I not seeing here?

Quote:
Originally Posted by Martha
Damn lawyers can't write.
No one has ever debated that. But, we still love 'em. And pay 'em.
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