Hello I have a tax / Trust law / Asic / Company Liquidation…

Question

Answer 1

Solicitor: Leon, Solicitor replied 10 years ago

Good Evening

If it is worth anything, ie can be claimed on then the appointed liquidator can recall it back and take the money.

The Directors of the company (trustee) become liable if they have acted negligently.

It is a difficult situation because insolvent trading does not apply here because the company is not trading. It is the trust.

If the company has breached its role as a trustee then the directors may be liable under trust law.

The liquidator can only call back the asset if it is of value and can pay some of the debts.

If it is found that the Directors have caused this they can be held liable.

Here is some decisions that have changed the law.

http://www.claytonutz.com/publications/newsletters/banking_and_financial_services_insights/20050630/personal_liability_of_directors_of_corporate_trustees.page

It is a very difficult question to give you a definitive answer. It is a matter that will need to be looked at by a corporate lawyer to get more detailed advise.

Directors can be found personally liable.

Contact the law society of NSW and get a referral.

Their website is

http://www.lawsociety.com.au/

I hope this is of assistance. If you have any further questions please do not hesitate to contact me.

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Answer 2

Solicitor: Leon, Solicitor replied 10 years ago

Good Evening

You can cease a trust by notifying the ATO. The Trust deed will also detail in it what needs to be done.

The Trustee company has to close the trust.

ATO needs ot be notified that te trust is ceasing to trade as of X date.

The person who set it up can terminate it

Here is some information

http://www.innovation.gov.au/SmallBusiness/LegalHelp/LegalTopics/BusinessStructures/Pages/SettingUpAndTerminatingATrust.aspx

When terminated all debtors need to be notified and the assets/liabilities will be vested in the trustee.

The trustee has no assets. The trust is your issue.

if you liquidate the trustee you will have to appoint another trustee of the trust because it cannot exist without one. The problem does not go away though.

The debt belongs to the trust

I hope this is of assistance. If you have any other questions please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Answer 3

Solicitor: Leon, Solicitor replied 10 years ago

Good Afternoon

That is only if they are chasing a beneficiary.

If you are a beneficiary of the trust and you owe money the creditors cannot touch any asset in a trust you are a beneficiary of to pay that debt you owe.

In this case the trust owes the money not you as a beneficiary.

If the trust owes the money it is liable to pay and the assets it owns are at risk. The beneficiaries then can sue the trustee for losing the assets.

I hope this is of assistance. If you have any other questions please do not hesitate to contact me.

Having answered your question I would like to explain how I am paid for my work. The rating given by you, for my answer will decide whether or not I will be paid for my work.

At the end of this post you will see 5 faces asking you to rate my work. Selecting either of the 2 the unhappy faces means you are not happy with my answer and do not wish me to be paid for my work. The other 3 mean I am paid.

I would prefer you rate me at the very end of our session not after each response. This way I can be sure you have an answer that assists you and you can rate the whole experience.

If you want more information after I respond, or wish to have something cleared up, select "Reply so Sydney-Lawyer" or "Reply to Expert" and we can continue until you are satisfied.

I am here to assist you as quickly as possible, and you rating each post will delay the process as it does not tell me what the issue is. I would prefer you ask me questions than rating the response and not providing me with further questions.

Hello I have a tax / Trust law / Asic / Company Liquidation…

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