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Dear Collegues,
All members of the SMSF should be directors of the trustee company.
Is it applicable to trustee co of the bare trust?
Theer are four mebers in SMSF.
Can just two of them be the directors of trustee of bare trust?
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Thanks for the question.
In the context of a bare trust for a limited recourse borrowing arrangment under section 67A of the SIS Act, there is no requirement that all of the members of the fund are also directors of the holding trust/bare trust company. The arrangment you have described would be sufficient so long as the surrounding document makes it clear that the holding trust/bare trust company is acting on behalf of the trustee of the SMSF.
The ATO makes the following (generic) comments as to the identity of the holding trust:
"The super law does not specify the type of trust that must be used as a holding trust in an LRBA. The law specifies only that the SMSF trustee must have a beneficial interest in the asset being held in the holding trust and the right to acquire legal ownership of that asset after making one or more payments. In addition, for the special in-house asset rule to apply, the asset must be the only property of the holding trust."
https://www.ato.gov.au/Super/Self-managed-super-funds/In-detail/SMSF-resources/SMSF-technical/Limited-recourse-borrowing-arrangements---questions-and-answers/?page=7