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Hi , I have a fund with four individual trustees. One of the trustees wants to sign the financials on behalf of all the other trustees, they have an EPOA (Enduring Power of Attorney) for all the other trustees. All the other trustees are not under a legal capacity and as far as I am aware are all in Australia. My question is do all the other trustees need to resign if one of the trustees is acting as EPOA on behalf of all the other trustees ?
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Hello Chris
Thanks for an interesting question.
In the scenario you describe the three members of the fund that have each granted an Enduring Power of Attorney (EPOA) to the fourth member do not have to resign as trustees.
There is no requirement in the SIS Act that someone is under a legal disability or outside of Australia (common situations where an EPOA is activated) for an EPOA to be in place.
It would be appropriate as auditor to have a copy of the EPOAs and to be satisfied that they can be activated at any time, without the need for some trigger event to have occurred (such as diminished capacity, incapacity, being outside of Australia, etc.).
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