Purpose Built Corporate Trustee

A corporate trustee can be an existing company that may be running a business or acting in some other role as well as that of being a trustee of a superannuation fund. Though this is often legally acceptable there are a few matters which need to be considered.

The directors of the company must all be members of the superannuation fund (the only exception is a single member fund which can have a second director who is not a member) and all the members of the superannuation fund must be directors (trustee/director/member relationships ).This means that the fund members, as directors, have a say and a responsibility as directors for the other activities that the company may be carrying out. This is not always compatible with the business owner's or the member's wishes.

The company's constitution determines the influence that each director has. This generally means that each director has an equal say (with the Chairman's casting vote) irrespective of the size of their respective member accounts.

A purpose built corporate trustee is designed to act ONLY as a trustee of a self managed superannuation fund. It's constitution mirrors the wording of our deed so that the power of each director's vote is proportionate to their member balance. Not only does this provide members with a more equitable voting scenario but it also makes the corporation eligible for the special yearly ASIC return fee of $40 rather than the usual rate of $212.

As we are able to produce either type of corporation for the same price you will need to determine which type you would prefer. If you are ordering a new company to act as trustee for a new fund then please be sure to start the company at the same time or before you start the fund.