Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 260FC

Who can be trustee

(1)

The trustee must be:

(a)

the Public Trustee of any State or Territory; or

(b)

a body corporate authorised by a law of any State or Territory to take in its own name a grant of probate of the will, or letters of administration of the estate, of a deceased person; or

(c)

a body corporate registered under the Life Insurance Act 1995; or

(d)

an Australian ADI; or

(e)

a body corporate, all of whose shares are held beneficially by a body corporate or bodies corporate of the kind referred to in paragraph (b), (c) or

(d)

if that body or those bodies:

(i)

are liable for all of the liabilities incurred, or to be incurred, by the trustee as trustee; or

(ii)

have subscribed for and beneficially hold shares in the trustee and there is an uncalled liability of at least $500,000 in respect of those shares that can only be called up if the trustee becomes an externally-administered body corporate (see section 254N); or

(f)

a body corporate approved by ASIC (see section 260MB).

Note: Section 260GD provides that if the borrower becomes aware that the trustee cannot be a trustee, the trustee must be replaced.

Circumstances in which a person cannot be trustee

(2)

A person may only be appointed or act as trustee (except to the extent provided for by section 260FD) if the appointment or acting will not result in a conflict of interest or duty. This subsection is not intended to affect any rule of law or equity.