Trading Trusts—Oppression Remedies
Tabled in Parliament Date:
This project is about trading trusts law reform. A trading trust is a popular way to structure a business, instead of forming a company.
A trading trust has a trustee that holds property on behalf of beneficiaries, like other trusts. The difference is that a trading trust carries on a business. Trading trusts are used by small family businesses and 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 trading trusts law reform, especially oppression remedies. In June 2014 we 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 informed the final report published on 6 May 2015. The Commission recommended 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, submissions and other documents can be downloaded from the links below.
- Terms of reference received
- Submissions and consultations
- Submissions closed
- Final Report
- Tabled in parliament