Corporate Trustee – Should Director Shareholdings Be Beneficially or Non-Beneficially Held?

(Enthusiast)Enthusiast

15 Apr 2025

Hi wonderful community,

I need some advice. We’ve recently set up a discretionary trust with a corporate trustee. Both my wife and I are directors of the trustee company, and we each hold one ordinary share, which is non-beneficially held. The trust will earn passive income only.

When we went to Westpac to open a bank account, they initially said the shares should be beneficially held. However, their business team later said that our setup is fine, and the account was opened.

In the meantime, we also visited ANZ, and they’re still saying the shares should be beneficially held. Our accountant said this is the correct setup. Not sure Why ANZ is saying different.

Has anyone had a similar experience? And is this setup correct?

Thanks in advance!

0 likes

1,566 views

1 replies

1,566 views

1 replies

All replies

YellowPotato

(Taxicorn)Taxicorn

16 Apr 2025

I think it should be beneficially held so that it means you are the owner of the share.

From ASIC

"What is a shareholder's beneficial status?

'Beneficially held' means that the owner of the shares gets the direct benefit from the shares. Direct benefits include dividend payments.

If the shareholder is not holding the shares on behalf of another person, organisation or trust, the shares are beneficially held. Answer 'Y' the shares are beneficially held.

If the shareholder is holding the shares on behalf of another person, organisation or trust, they are not beneficially held. Answer 'N' the shares are not beneficially held."

0 likes

Corporate Trustee – Should Director Shareholdings Be Beneficially or Non-Beneficially Held?

All replies

Featured articles

Getting your business ready for tax and super

Top liked users

Top contributors

Explore tax & super topicsExplore tax & super topics

About usAbout us