Question: Can an Owners Corporation make a Fixed Bank Deposit for investment for 6 months, even though an OC is a non-profit Organisation?
Answer: An owners corporation is a legal entity that is permitted to make a fixed bank deposit.
An owners corporation is a legal entity that is permitted to make a fixed bank deposit for investment for 6 months, as long as the interest earned from that account is used to fund maintenance of the common property. In my view, it would not be viewed that the OC is acting as a business if its members do not pocket the interest earned from that account and the interest is used to repair and maintain their common property asset.
Rochelle Castro
RC & Co Lawyers
