a.1 - Natal Law Society

AGM MINUTES - 15 - 12 OCTOBER 2012
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debts be raised for the remaining enquiry debtors and that thereafter on an annual basis a
provision raised on any movement in the enquiry debtors. This would obviously have a
significant impact on the net profit of the year in which the initial provision is raised.
Council considered the matter at the September 2012 meeting and resolved to accept the
auditor’s recommendation and adopt a policy to raise the provisions for doubtful debts.
In terms of financial performance, the Society realised a surplus of R210 695 primarily as a
result of curtailed expenditure assisted by improved income from investments and the
ongoing attempts to collect outstanding subscriptions.
The balance sheet of the Society reflects that the Society’s liabilities are adequately
covered by its assets, having particular regard to cash and investment holding against paid
and other payables.
Trade receivables and enquiry debtors will of course be an area which will be carefully
looked at in the current financial year on the basis referred to above.
Income:
Agency Fee, the fee earned on the collection of trust interest to be paid over to the
Attorneys Fidelity Fund, is the major source of the Society’s income comprising some 59% of
the Society’s total income for the year under review. This income stream, having suffered
further decline in 2012 with a 7% decrease from the previous year, is anticipated to decline
even further.
The Attorneys Fidelity Fund is reviewing its business development strategy to address the
issue of the maximisation of trust increase and minimisation of bank charges.
Income from investments shows an increase as a result of the broadening of the Society’s
investment mandate to include investment in equity in addition to cash investment with
banking instructions. The Society has taken a reasonably conservative approach by ensuring
that the majority of the managed portfolio is invested in cash.
Subscriptions is a second major source of income and despite ongoing attempts to recover
subscriptions and the offers to members to have these paid in instalments, the recovery of
subscriptions remains an area of concern, so much so that the Council resolved to hand the
debt over for collection and errant members will be notified hereof shortly after the annual
general meeting.
Essa reminded members that the Society is required to pay a capitation levy to the Law
Society of South Africa irrespective of whether or not members pay their subscriptions to
the Provincial Law Society. Non-payment of subscriptions therefore has a double impact on
the Society’s finances.
He added that, as reported in previous years, the Society cannot afford not to increase