The 5 Proposed Resolutions for EGM on Sat 4 April

This coming Saturday’s EGM has been called by the BOD to consider and approve 5 resolutions pertaining to amendments to several sections of the Church Constitution.

CT wishes to state here that our Church’s way of communicating such Notices of EGM to members all these years leaves much room for improvement. For a 48-year old Church and one our size, we are certainly still very backward and disorganised where communication is concerned.

All Notices of EGM (and AGM) should be despatched to members as early as possible via the postal mail, email, handouts and church website in addition to announcements from the pulpit. All such notices should be accompanied by the full details of the proposed resolutions with supporting explanations and rationale. This is to enable members to study, comprehend and evaluate the proposals so that they will be in a position to vote wisely and with understanding. Early despatch of such notices will also allow members sufficient time to provide feedback and suggestions to further improve on the proposals, if need be.

Of course, the BOD's present style of notification is ideal for an authoritative and dictatorial leadership which do not wish to be transparent or which wants members to be mere blind followers. We hope this is not the case. We also hope that these few changes are not the completion of the Financial Governance and Constitutional Review and ‘Moving Forward’ plan that our church has been talking about. It will be a great shame and a despicable scam if this is so.

The 5 Proposed Resolutions are:

1. Proposed amendments to Church Constitution RULE XII: FINANCIAL PROVISIONS, Item 2c

2. Proposed amendment to Church Constitution RULE XII: FINANCIAL PROVISIONS, Items 3a, 3b and 3c

3. Proposed amendment to Church Constitution BY-LAWS ARTICLE IV: FINANCIAL PROVISIONS. Item 2

4. Proposed amendment to Church Constitution BY-LAWS ARTICLE III: THE BOARD OF DEACONS. Item 3: Transition Period

5. Proposed amendment to Church Constitution RULE XI: OFFICE-BEARERS, Item 6 : NOMINATING COMMITTEE

Details of the Changes and CT’s comments

1. Proposed amendment to Church Constitution RULE XII: FINANCIAL PROVISIONS, Item 2c

Existing Wordings
As soon as possible after the end of each financial year, a statement of receipts and payments and a balance sheet for the year shall be prepared and audited by the Auditors. The audited accounts shall be submitted for approval at the next Annual General Meeting and copies shall be made available at the registered office or place of meeting of the Church for the perusal of Voting members.

Proposed Changes
As soon as possible after the end of each financial year, a statement of income and expenditure and a balance sheet for the year shall be prepared and audited by the External Auditors. The audited accounts shall be submitted for approval at the next Annual General Meeting and copies shall be made available at the registered office or place of meeting of the Church for the perusal of Voting members.

CT’s comments
The proposed change is to facilitate the engagement of external auditors to audit the accounts. This is what the concerned members have proposed to the Treasurer, SP and BOD more than a year ago and should be well received. However, to re-affirm what was established at last year’s AGM, the audited accounts should include the Missions Department accounts and all the Extended Ministries and Auxiliary Ministries’ accounts besides the Main Church accounts.

If these other accounts are not included, then members are advised to reject the resolution.


2. Proposed amendment to Church Constitution RULE XII: FINANCIAL PROVISIONS, Items 3a, 3b and 3c

Existing Wordings
a) One or more Auditors shall be elected at a General Meeting by a simple majority vote. The Auditors shall not be members of the Board of Deacons, the Board of Trustees, Church Elders or paid employees of the Church.

b) The Board of Deacons shall nominate at least two candidates to each vacancy.

c) The Auditors shall be required to audit the accounts of the Church for the year, and to prepare a report or certificate for the Annual General Meeting. They may also be required by the Board of Deacons to audit the accounts of the Church for any period within their tenure of office at any date, and to make a report to the Board of Deacons.

Proposed Changes
a) External Auditors shall be nominated by the Board of Deacons and shall be elected at a General Meeting by a simple majority vote.

b) The Board of Deacons is authorized to fix their remuneration.

c) The External Auditors shall be required to audit the accounts of the for the year, and to prepare a report or certificate for the Annual General Meeting. They may also be required by the Board of Deacons to audit the accounts of the Church for any period within their tenure of office at any date, and to make a report to the Board of Deacons.

CT’s comments
Again, this proposed change is to facilitate the engagement of external auditors to audit the accounts. Again, our stand is that the audited accounts should include the Missions Department accounts and all the Extended Ministries and Auxiliary Ministries’ accounts besides the Main Church accounts.

If these other accounts are not included, then members are advised to reject the resolution.


3. Proposed amendment to Church Constitution BY-LAWS ARTICLE IV: FINANCIAL PROVISIONS, Item 2

Existing Wordings
Subject to any resolution passed at a meeting of the Board of Deacons, all cheques or withdrawal notices on the Church’s accounts shall be signed jointly by any two persons mentioned herein below provided always that:

i) Below RM 5,000.00 – any two persons from Groups 1 and 3
ii) RM 5,000.00 and above – any two persons from Groups 1 and 2 provided always that both of them cannot be from the same group

Group 1
a) Senior Pastor
b) A nominee of the Senior Pastor approved by the Board of Deacons

Group 2
a) Secretary of the Board of Deacons
b) Treasurer
c) One member of the Board of Deacons as may be approved by the Board of Deacons

Group 3
a) Church Office and Operations Manager
b) Finance Administrator

Proposed Changes
Subject to any resolution passed at a meeting of the Board of Deacons, all cheques or withdrawal notices on the Church’s accounts shall be signed by any two persons mentioned herein below provided always that:

i) Below RM 5,000.00 – Financial Controller and any other person from Group 3.
ii) RM 50,000.00 or less – any two persons from Group 2 and 3 provided always that both of them cannot be from the same Group.
iii) Above RM 50,000.00 – any two persons from Group 1 and 2 provided always that both of them cannot be from the same Group.

Group 1
a) Senior Pastor
b) A nominee of the Senior Pastor approved by the Board of Deacons

Group 2
a) Secretary of the Board of Deacons
b) Treasurer
c) One member of the Board of Deacons as may be approved by the Board of Deacons

Group 3
a) Financial Controller
b) Executive Administrator
c) A nominee approved by the Board of Deacons

CT’s comments
The only change is the Group 3 signatories. As there are plans to appoint a Financial Controller, including that person as a signatory is acceptable. However, adding in the Executive Administrator (position now held by Jim Guneratnam) and a nominee approved by the BOD is highly suspicious. Who will be this nominee?

Further, the concerned members’ stand is that all pastors, including SP should not be a cheque signatory. A nominee of SP as a signatory is also not acceptable. Since the church is not a business enterprise belonging to SP, there is no necessity for him to appoint a nominee.

The resolution as it is, is totally unacceptable and should be rejected by members unless an amended resolution acceptable to members is put to vote at the EGM.


4. Proposed amendment to Church Constitution BY-LAWS ARTICLE III: THE BOARD OF DEACONS, Item 3: Transition Period

CT’s comments
This resolution seeks to remove this entire clause which relates to the appointment of deacons during the transition period following the adoption of our Constitution By-Laws in the early years. This clause is no longer applicable and its deletion will not have any effect on the Constitution.

Members can vote in favour of this resolution.


5. Proposed amendment to Church Constitution RULE XI: OFFICE-BEARERS, Item 6: NOMINATING COMMITTEE

Existing Wordings
The Nominating Committee shall comprise the Senior Pastor and a minimum of six Voting members of the Church appointed by the Board of Deacons and approved by the Senior Pastor . Two of these should be the Elders (if Elders have been appointed and are available) but none of the six Voting members so appointed shall be existing members of the Board of Deacons.

Proposed Changes
The Nominating Committee shall comprise the Senior Pastor and a minimum of six Voting members of the Church appointed jointly by the Board of Deacons and the Church Elders (if Church Elders have been appointed). None of the six Voting members appointed shall be existing members of the Board of Deacons.

CT’s comments
The removal of the requirement of SP’s approval of the Nominating Committee members is a right step. However, to avoid any undue influence by SP on the nominees for deaconship, SP should not be on the Nomination Committee. The Committee members must also not be related to any of the existing deacons to avoid any conflict of interest.

The resolution as it is, should be rejected by members unless it is amended to exclude SP from the Nomination Committee.