Frequently asked legal questions
Can my SMSF have up to 6 individual trustees?
Legally, yes. However, more than 3 individual trustees is unwieldly and makes registration of assets in the name of the SMSF difficult (for example, brokers and ASX companies will not follow more than 3 people to be listed as owners of shares). Maddocks, therefore, does not recommend that a SMSF has more than 3 individual trustees. Instead of appointing more than 3 individual trustees of a SMSF, we recommend that you consider appointing a corporate trustee.
Do I need a Director Identification Number?
It is a requirement of law that directors now hold a Director Identification Number. If the product you are purchasing involves the creation of a company, creation of a corporate trustee or the appointment of a new director, then each director of the company/corporate trustee will need to verify their identity by applying for a director identification number (Director ID). Directors will retain the same Director ID even if they cease being a director, become a director of another company, change names or move interstate or overseas. Directors will not need to apply again or renew their applications.
If a person is appointed as a director:
- between 1 November 2021 and 4 April 2022, they must apply for a Director ID within 28 days of appointment.
- from 5 April 2022, they must apply for a Director ID prior to appointment.
For information on how to set up your Director ID, visit: https://www.abrs.gov.au/director-identification-number/apply-director-identification-number.