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About Product
A Leading Member is the initial person who is provided with the power to appoint and remove a beneficiary or trustee, and is appointed as the Leading Member Appointor of the Trust for which this company acts as Trustee.
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General Information
The LYD Leading Member Discretionary Trust Company Trustee has a sole purpose to act as a corporate trustee of an Leading Member Discretionary Trust. The Leading Member of the Trust is appointed as Chair of the company.
The Leading Member is the initial person who is provided with the power to appoint and remove a beneficiary or trustee, and is appointed as the Leading Member Appointor of the Trust for which this company acts as Trustee.
Benefits
- Flexible and matches the requirements for a Leading Member Discretionary Trust.
- The Leading Member of the Trust is automatically appointed as chair.
- One Director – one vote rule with Leading Member veto power.
- The Leading Member can appoint or remove Directors.
- Only ordinary class of shares offered.
- On death of a member, the Board of Directors must appoint the deceased member’s LPR as a Director or lose its trusteeship.
- All of the shares of the company are held by the Leading Member. On the death of the Leading Member, these shares are cancelled and new shares issued to the incoming Leading Member.
Frequently Asked Legal Questions
Who acts as Chair?
The Leading Member of the Trust is the chair and has the casting vote in the event of any locked vote on the Board. The Leading Member has a veto on any Board decision.
Is Proportional Voting an option?
The LYD Leading Member Discretionary Trustee company generally provides for one Director – one vote rule with the Leading Member acting as Chair and with casting vote and veto power.
What happens on the death of the Leading Member?
On death of a member, the shares of the Leading Member are transferred to the next Leading Member and thus control.
What can the Leading Member control?
The Leading Member holds a powerful position in the Company and owns all the shares and had Board veto power. In addition, the Leading Member is the only person who can appoint or remove a Director.
How long does this document take to assemble?
Depending on the complexity of the data, this document should take approximately 5-10 secs to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts
Is this document a legal document?
All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”
However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.
The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:
“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”
Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.
Is the document easy to read?
All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.
What lawyers sign off on the LYD documents?
All LYD documents are prepared and signed off by LY Legal.
Are the LYD documents reviewed regularly?
All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.
Can I get a sample of this document?
Yes, please email support@lyd.com.au to request a sample document for you to review.