Trust and Constitutions – Making a Change

Ensuring Corporate Documents' Enforceability - What to Know

10/04/2024

Sometimes trust deeds or company constitutions need to be changed. To ensure this is done correctly, you will need the help of an experienced lawyer.

Changing a trust

Changing a trust can be complex, and if it’s not done right, you could end up with tax problems.

To change the trust deed itself, you will need what’s called a deed of variation. If this is not handled correctly, you may end up “resettling” the trust, which means you have created a new trust out of the old one.

If you would like to change a trustee, you will need a trustee resolution, and a deed of variation. A change of trustee usually needs the permission of the person who established the trust in the first place.

If the trustee is a corporation, and not an individual, you will have to change the directors of that corporation. That means the existing directors will have to resign; the new directors must sign a “consent to act” form; and ASIC must be notified. The company’s director register will also need to be updated.

To add or remove a beneficiary to a trust, again, you will need a deed of variation.

Whatever changes you need to make to a trust, you should get specialist legal advice.

Changing a constitution

You can usually change a company’s constitution with a written, unanimous resolution of the shareholders. Or you can pass a special resolution, which will need at least 75 per cent shareholder approval.

Changing the constitution might involve adding new types of shares, or amendments to the original documents.

However, it is important to be aware of and follow the processes set out in your constitution, the Corporations Act, and your shareholders agreement. This will ensure that your new and updated constitution is valid and enforceable.

Whether you are making changes to a trust, or a constitution, it’s vital that every step is done correctly.

The corporate law specialists at GLG Legal are here to help you. Contact our office on (07) 3161 9555 today for an appointment.

You May Also Like…

Who Should Review a Contract?

Who Should Review a Contract?

In our business and personal lives, we are exchanging contracts all the time. For employment, for homes, for sales,...

CALL NOW TO TALK TO ONE OF OUR EXPERT LAWYERS

Brisbane, Head Office

Level 8, 193 North Quay, Brisbane QLD 4000

P: 07 3161 9555

E: info@glglegal.com.au

Redland Bay

133 Broadwater Terrace, Redland Bay QLD 4165

P: 07 3206 8700

E: info@glglegal.com.au

Springfield

Brookwater Office Park,

Level 1, Building 9,

22 Magnolia Drive, Brookwater QLD 4300

P: (07) 3288 3511

E: info@glglegal.com.au