Trading trusts—oppression remedies

A trading trust is a popular way to structure a business, an alternative to forming a company. Like other trusts, a trading trust has a trustee that holds property on behalf of beneficiaries. The difference is that a trading trust carries on a business. Trading trusts are used by many small family businesses as well as larger enterprises. However, problems can arise if beneficiaries want to leave the trust or change the way the trust is run, but are prevented from doing so. Unlike company shareholders, there's no clear way to obtain relief from oppressive conduct.

In October 2013, the Commission was asked to review and report on oppression remedies for beneficiaries of trading trusts. In January 2014, after initial research, it produced a consultation paper that outlined the law and the problems with it and asked for submissions.

Seven submissions, three expert consultations and a roundtable discussion fed into the final report delivered on 3 February 2015. In it, the Commission recommended certain changes to the Trustee Act 1958 (Vic) to give beneficiaries in trading trusts new rights and legal recourse for oppressive conduct by trustees. 

The report and other documents can be downloaded from the links below.

Timeline

Current: Table in parliament

Full timeline:

Reference
Consultation
Submissions
Final report
Tabled in parliament
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Project Publications

Trading Trusts—Oppression Remedies: Report (pdf)

The Commission's report into Trading Trusts—Oppression Remedies was tabled in Parliament on 6 May 2015. Download the report from the link below.

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Trading Trusts—Oppression Remedies Report (html)

The Commission's report into Trading Trusts—Oppression Remedies was tabled in Parliament on 6 May 2015. Navigate this report by using the menu on the...

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Trading Trusts—Oppression Remedies: received submissions

The Victorian Law Reform Commission received the following submissions in response to the Trading Trusts—Oppression Remedies consultation paper...

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Trading Trusts—Oppression Remedies: consultation paper (pdf)

Trading trusts are often used as an alternative to companies as a way to structure businesses. The Victorian Law Reform Commission has been asked to...

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Trading Trusts—Oppression Remedies: Consultation Paper (html)

Trading trusts are often used as an alternative to companies as a way to structure businesses. The Victorian Law Reform Commission has been asked...

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Trading trusts - oppression remedies: terms of reference

Sections 232 to 234 of the Corporations Act 2001 provide a range of remedies for shareholders for oppressive conduct by a corporation. The Victorian...

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