On a HDT, with a company as trustee, is there a problem with the trustee company only having a sole director? does it open up problems from an asset protection point of view (as opposed to using two + directors)?
Also, with the $200 odd dollars annual ASIC fee for the company, how does the money actually get into the company? just a minute in the records as a gift? (obviously when it’s time to buy something in the trust it’s a loan to the trust and you get income units in return)
I’ll check with the accountant but wouldn’t mind another opinion first.
oh and lastly..shareholders of the trustee company – are the open to any liability at all ?
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I don’t think there is any problem with one director – this is generally recommended as it limits the guarantees required by lenders. The trustee is just the ‘person’ that runs the trust.
The ASIC could probably be paid by the trust, as the trustee exists to run the trust in this case and would have no income.
Shareholders cannot be held responsible for the company – generally. If they are making decisions, then they could be liable as they may turn out to be defacto directors etc. If personal guarantees are given then they can be held liable for these of course – some banks want guarantees from shareholders too.
I am not an accountant or lawyer, so seek proper advice please.
Terryw
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Thanks Terryw.
Along the lines of what I thought – which is good. I’ll check with the accountant when I can free up some time.
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