Trustees Must Stay in Control of their Trust Deed

15 August 2011

A newsletter debate seems to have sprung up regarding automatic trust deed updating services. The key issue being debated is simple:  should a trustee give up control of their trust deed?

The answer to this question is no.

The paper also notes the covenant in s.52(2)(e) of the SIS Act which prohibits a trustee from entering into any contract or doing anything else that would prevent the trustee from, or hinder the trustee in, properly performing or exercising the trustee’s functions and powers.

SUPERCentral agrees that this level of compliance is vitally important.  That’s why the deed executed by the trustee when they join SUPERCentral does not remove the trustee’s powers but simply gives Super Governing Rules Pty Ltd the power of amendment in addition. 

SUPERCentral’s update process is carefully structured to ensure trustee awareness, involvement and full understanding of each update and the process:

  • Update notices are sent 14 days before the update becomes effective so that the trustee knows what is happening and consents
  • The trustee has an active duty to review the amendment and communicate to SUPERCentral if they do not consent to the amendments
  • Nothing that a trustee is asked to sign when joining SUPERCentral prevents or hinders the trustee in the exercise of their powers

We trust that this settles any questions you may have around this debate, but please feel free to contact us if you require any further information.

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