NOTES ABOUT SMSF MEMBERS
(CORPORATE TRUSTEES)
  1. You need to decide who are going to be members of the fund at this early stage. You may want to keep your fund separate from family members, or you may want your spouse or children to be members of the fund. The maximum number of members is four. The maximum number of members is four.

  2. Note that all members (including children) will need their own Tax File Numbers so if they haven't got one they should apply at an early stage for one.

  3. The online filler is not suitable for members who need representation (because for example they are children or not able to manage their own affairs). In the case of a child the representative would be a parent or guardian, otherwise it could be the holder of an enduring power of attorney or court appointed guardian. Either way, the member can be added easily afterwards.

  4. All members of the fund must also become directors of the corporate trustee provided they are of full legal capacity and not disqualified (for example undischarged bankrupts or those recently convicted of a serious offence of dishonesty).

  5. If there is only one member of the fund that person will be a director of the corporate trustee and must also be company secretary. There is no need to have a second director, but you can have one if you wish. If there is a second director that person may not be an employer of the member of the fund unless they are related (which includes spouses).

  6. If there is more than one director, I recommend that one of them is also company secretary so you need to decide now who is to take this role. It will be the person who is taking the lead with the paperwork. The company secretary would have responsibility to ensure that all the appropriate documents are lodged in a timely manner with ASIC. The appointee can easily be changed later.

  7. Each director is also going to be a member of the company (a shareholder), and this is done automatically.

  8. The company constitution provides that a managing director cannot be appointed, because this is inappropriate for a non-trading company (the company will be a "special purpose" company).

  9. Each director is effectively a trustee of the fund using the company to act as corporate trustee. Each director/trustee will need to understand their legal obligations arising from this. There is plenty of information about this on the ATO site but the obligations also appear in the product disclosure statement, the trustee's declaration and in the trust deed.