THE AUDITORS INSTITUTE | FORUM

Archived Forums

When you become a member of The Auditors Institute, you immediately gain access to expertise, advocacy for your profession and peace of mind.

Ask a question in our members-only forum or use the search function to find prior technical discussions on your topic. You can expect a response within 24-48hrs.

Want to become a Member?

Join Now

Already a Member?

Disclaimer

The forum is made available by The Auditors Institute Ltd for the benefit of it’s members only, and its primary purpose is to facilitate education, training, and discussion between members. The information and answers provided within the forum are of a general nature and do not consider any specific circumstances, objectives, financial situation or needs related to the matter/s raised. The responses should not be construed as financial advice, and each Member should seek their own professional advice before making any decisions. The Auditors Institute Ltd and its representatives are not responsible for any actions taken based on the information provided in the forum.

To test this feature, visit your live site.

Phuong Hoang Thi Ngo

Sep 26, 2021

Add Shareholders of Corporate Trustee

in SMSF Technical Forum

An SMSF with a:

1. Corporate Trustee

2. 2 members of the SMSF

3. Both members are directors & shareholders of the Corporate Trustee

Can the corporate trustee have 2 additional shareholders who are not associated with the SMSF in any way?

Many thanks

2 answers0 replies

Comments (2)

Phuong Hoang Thi Ngo

Sep 27, 2021

Thanks a lot .

THE AUDITORS INSTITUTE

Sep 27, 2021

Hi Phuong

Section 17A of SIS states that (for Funds other than single member funds) all members must be trustees and all trustees must be members. For a company as a trustee of a SMSF this means all members must be directors of the trustee company and all directors must be members.

The SIS legislation does not prescribe who the shareholders of the corporate trustee have to be so yes in your example there could be 2 additional shareholders who are not associated with the Fund.

In most Funds the shareholders of the corporate trustee are members of the Fund (or directors of the Trustee company). I would request an explanation as to why it has been structured this way.

Have other members come across any such examples? Has it been for estate planning purposes?

Thanks

SMSF AAA