Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:1_260fc
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 1 cl 260FC
Character Range: 126116–127599

260FC  Who can be a trustee

Who can be trustee

 (1) The trustee must be:
 (a) the Public Trustee of any State or Territory; or
 (b) a body corporate authorised by a law of any State or Territory to take in its own name a grant of probate of the will, or letters of administration of the estate, of a deceased person; or
 (c) a body corporate registered under the Life Insurance Act 1995; or
 (d) an Australian ADI; or
 (e) a body corporate, all of whose shares are held beneficially by a body corporate or bodies corporate of the kind referred to in paragraph (b), (c) or (d) if that body or those bodies:
 (i) are liable for all of the liabilities incurred, or to be incurred, by the trustee as trustee; or
 (ii) have subscribed for and beneficially hold shares in the trustee and there is an uncalled liability of at least $500,000 in respect of those shares that can only be called up if the trustee becomes an externally‑administered body corporate (see section 254N); or
 (f) a body corporate approved by ASIC (see section 260MB).

Note: Section 260GD provides that if the borrower becomes aware that the trustee cannot be a trustee, the trustee must be replaced.

Circumstances in which a person cannot be trustee

 (2) A person may only be appointed or act as trustee (except to the extent provided for by section 260FD) if the appointment or acting will not result in a conflict of interest or duty. This subsection is not intended to affect any rule of law or equity.