What happens when a corporate trustee of a trading trust goes into liquidation? Here we look at the current state of the law and the uncertainty around the power of liquidators in this situation.
A trading trust is a trust over goodwill and business assets with the trustee being the legal person responsible to creditors. A trading trust is usually a discretionary trust whose trustee is a company, that is used to trade for the benefit of the beneficiaries. As with a non-trading trust, a trading trust separates legal ownership of assets from beneficial ownership and control. The controllers of the business are the owners and their family who exercise a controlling mind through their appointment as directors of the trustee company.
In recent years, there has been a real ‘gold rush’ for cryptocurrency. And while cryptocurrency needs to be ‘mined’, just like the real stuff, it is much easier to transport and, potentially, keep secure.
Offshore tax havens are the jurisdictions of choice for building corporate structures to protect assets from creditors and hide the identity of ultimate beneficiaries. This article should be of interest to any professional advisor interested in understanding the nuts and bolts of setting up an offshore corporate structure.
Receiving a Director Penalty Notice (DPN) will be a confronting experience for any company director.