Australians love trading through trusts. In a tough trading environment, we will be seeing trust insolvencies. In this session David talked about some of the peculiarities of broke trusts, including:
- is the broke trustee automatically sacked?
- if not, should the trustee be sacked and replaced?
- how does the trustee get refunded amounts it owes or has paid to creditors?
- what if the trustee also traded personally, or as trustee of another trust?
- getting the liquidator or bankruptcy trustee paid, and whether there is GST on remuneration
- other ways in which the ATO and SRO might get a jump on other creditors.