What am I not seeing here?

[larry]

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?

 

[poboy]

To have a little fun suggest an investment of $50,000.50.
That fifty cents might make the earth spin backwards.

 

[larry]

Yes, I think it's poorly written. Is this common? Any tips for a better clause?

 

[ERD50]

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!'.

ERD50

 

[youbet]

"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!    

 

[Martha]

Damn lawyers can't write.

 

[larry]

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!

 

[Nords]

Damn lawyers can't write.

Does that mean they don't get paid?

 

[free4now]

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".

 

[youbet]

Damn lawyers can't write.

No one has ever debated that. But, we still love 'em. And pay 'em.