When it’s worth being a shareholder in your SMSF trustee company

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Ownership of the shares gives the original members just a little more power when other family members get involved.

of this company have to be the same people as theof the SMSF. The idea is that anyone who wants to belong to an SMSF also has to take responsibility for running it.

Sometimes SMSF members are no longer directors of the trustee company, particularly if they have moved overseas and asked someone else to be the director of the trustee company instead. In practice, most SMSFs have just one member or two members of a couple. The most common shareholding structure is that these same people are the shareholders. But different structures can sometimes be useful.

Or what about cases where the members are no longer directors of the trustee company? This might happen because they have moved overseas and asked someone else to be the director of the trustee company instead. Usually, the members would keep the shares in the trustee company. It means they keep quite a bit of control. While the new directors must be left alone to make all the decisions about the SMSF, the members could always replace them if things got nasty.

 

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