Trustee lending money to Body Corporate

I have a scheme that needs to upgrade its security system, but they don’t have the funds. They also don’t want to enter into a loan so one of the owners (Trustees) said he is more than happy to pay for it and the BC can pay him back monthly whatever they can afford and no one has to know it was him, he just wants the security to be done and help the scheme. Is this possible?

This is definitely possible, but it is clearly a loan so we have to see what the STSM states about loans and borrowing money.

Unfortunately with the STSM Act coming into effect, there was an amendment done in terms of what resolution is needed for a BC to take out a loan. 

Before the STSM Act, only a Trustee resolution was needed for the BC to take out a loan.  In the STSM Act, they now need a special resolution.

Section 4. The body corporate may exercise the powers conferred upon it by or under this Act or the rules, and such powers include the power—

  • upon special resolution, to borrow moneys required by it in the performance of its functions or the exercise of its powers;