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The Company trustee of SMSF is also doing Company trustee for another Unit Trust (this Unit Trust does not involve to this SMSF)
For this Company Statement :
Under Share Structure Section show Number Issued 270 (Ordinary Shares)
Under Member Section (personal name) show 100 for "Number held" and select NO for "Beneficially held" and another line show 100 for "Number held" and select YES for "Beneficially held". Total only 200 Number held
I am wondering whether what also need mention for audit as above . Please help
Much aprreciate for your help
Hello Phuong Hoang Thi Ngo
Thanks for your question.
The Auditors Institute would not recommend that a corporate trustee of a self-managed superannuation fund (SMSF) acts as a trustee for more than one trust (with the SMSF being a trust).
That said, it is certainly possible for the corporate trustee of an SMSF to act as a trustee for another trust.
For example, this could occur where a corporate trustee of an SMSF is also the trustee of a unit trust (whether the units are held as an investment of the SMSF or are held outside of the SMSF - presumably by the member of the SMSF and their related parties).
Your question discusses the ownership details in relation to the shares in the corporate trustee from information which is presumably from the ASIC generated annual Company Statement.
Under section 17A of the Superannuation Industry (Supervision) Act 1993 (SIS Act) it is not a requirement that the members of a SMSF are the shareholders of the corporate trustee (where the SMSF has a corporate trustee).
Rather, it is instead a requirement, for SMSFs that have 2 or more members, that all of the directors of the corporate trustee are also members of the fund, and also that each member of the fund is a director of the corporate trustee - please refer to section 17A(1)(c) and (d)(ii) of the SIS Act.
For single member funds with a corporate trustee, the fund member can be the sole director of the corporate trustee, or there can also be second director (who is not a fund member). There are certain restrictions on who can be the second director in this instance.
Nevertheless, there is no requirement that the shares in the corporate trustee are held beneficially by the members of the SMSF.
Whilst realising that the standard practice would be for the member or members of an SMSF to own beneficially the shares in the corporate trustee, this is not a legal requirement under the SIS Act.
Hence, the 100 shares in the corporate trustee are held legally (and not beneficially) by the fund member is not of itself a reason to be concerned about the SMSF in question.
Rather, the more significant issue is who are the directors of the corporate trustee?
Hopefully this assists with your question.