The Commission was asked in October 2013 to review and report on oppression remedies for beneficiaries of trading trusts.
A trading trust is a popular way to structure a business, as an alternative to a company structure. 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.
Problems can arise when beneficiaries want to leave the trust or change the way the trust is run, but are prevented from doing so. Unlike shareholders in companies, there is no clear way for them to obtain relief from oppressive conduct.
The Commission delivered its report by 3 February 2015, and the report was tabled in Parliament on 6 May 2015. The Commission recommends changes to the Trustee Act 1958 (Vic), to give new rights to beneficiaries of trading trusts.
The report and other documents can be downloaded from the links below.