20/02/2017 There is still trust property registered in the name of a deregistered company | ASIC - Australian Securities and Investments

Investments Commission

Home
>Forbusiness
>Closingyourcompany
>Effectsofderegistration
>Propertyofderegisteredcompanies
>Thereisstilltrustpropertyregisteredinthenameofaderegisteredcompany

Thereisstilltrustpropertyregisteredinthenameofaderegistered
company
OnderegistrationallpropertythecompanyheldontrustimmediatelybeforederegistrationvestsintheCommonwealth.ASICmayfor
andonbehalfoftheCommonwealthbutisnotobligedtoperformallthedutiesandexerciseallthepowersoftheCommonwealth
astrusteeinrelationtoanypropertyheldontrustbytheCommonwealth.

ReferencesintheremainderofthisinformationrelatetoASICactingonbehalfoftheCommonwealth.

WhatASICwillandwon'tdowithvestedtrustproperty
ASICmayapproveapplicationsforASICto:

transfertrustpropertytobeneficiarieswherethetrusthasbeenwoundup.
Formoreinformationontransferringtrustpropertytobeneficiaries,pleasecontactthePropertyLawGroupat
property.law@asic.gov.au
transfertrustpropertytoanewtrusteewhenthealternativeremediesoutlinedbelowarenotavailable.

ASICwillnotnormallyapproveapplicationsforASICto:

transfertrustpropertywhenthetrusteewasderegisteredwithinthelastfewyears
selltrustproperty(e.g.topaycreditors)
actonanongoingbasisastrusteeinlieuofthederegisteredcompany
applytoacourttohaveanewtrusteeappointed.

AlternativeremediesyoumusttrybeforeyouapplytoASIC
ASICgenerallyexercisesitsdiscretionarypowersundertheActtodealwithvestedpropertyasalastresort.Youneedtoensurethe
followingalternativeremediesarenotavailabletoyoubeforeyouapplytoASICforatransfer.Thecostofalternativeremediesbyitself
isnotasufficientbasisforASICtoexerciseitspowerstodealwithproperty.

1.Ifthepropertyisshares
Ifthepropertyissharesandyouhaveaholdingstatementclearlyshowingthesharesarepropertyofthetrust,ASICmayifit
considersappropriateinthecircumstancestodosoprovideyouwithaletterfortheshareregistry.

PleaseforwardALLthefollowingdocumentstoproperty.law@asic.gov.au:

1.arecentholdingstatement(nomorethan3monthsold)
2.aCommonwealthstatutorydeclarationfromaformerofficeholderofthecompanyatthedateofderegistration(Note:if
thecompanyunderwentaliquidation,thestatutorydeclarationmustbefromaformerliquidator):

a.statingthenameofthetrust
b.identifyingtheshares(includingthefullSRN)

http://asic.gov.au/for-business/closing-your-company/effects-of-deregistration/property-of-deregistered-companies/there-is-still-trust-property-registered-in-the-n 1/3
20/02/2017 There is still trust property registered in the name of a deregistered company | ASIC - Australian Securities and Investments Commission

c.confirmingthecompanyheldthesharesastrusteeofthetrust
d.statingwhothenewtrustee/softhetrustare
e.confirmingthereisnootherpropertyofanytyperegisteredinthecompany'sname.

AtemplateforaCommonwealthstatutorydeclarationcanbedownloadedfromtheAustralianAttorneyGeneral's
Departmentwebsite.
3.anindemnityexecutedbythenewtrustee/sANDprimarybeneficiariesthatareatleast18yearsofage.Thisindemnity
protectsASICagainstclaimsbroughtagainstASICduetoitdealingwiththeshares.Ifanyofthenewtrusteesor
primarybeneficiariesarecompanies,theindemnitymustbesignedbyeachofthedirectorsintheirpersonalcapacity
ANDbythecompanyeitherunderitssealoraccordingtos127oftheAct.Pleaseusetheindemnity'Transfertonew
trustee'.

PleasenotetheremaybecircumstanceswhereASICdoesnotconsideritappropriatetoprovidealetterfortheshareregistry.Inthose
cases,thenewtrusteemusteitherreinstatethecompanyor,whereASICreinstatementisnotavailable,formallyapplytoASICforan
executedtransfer,whichincludespaymentoftheapplicationfeeandsubmissionofacompleteapplication.

2.Ifthepropertyislandrequesttotitlesofficedirectly
ASICisawareofthefollowinglegislativeprovisionswhichenablepropertytobevestedinthenewtrustee:

QLDsection110AoftheLandTitleAct1994(Qld)
VICsection58oftheTransferofLandAct1958(Vic)
WAsection182oftheTransferofLandAct1893(WA)orsection10oftheTrusteesAct1962(WA)whichdeemsthe
appointortobetheconveyingpartyforthepurposeofregistration.

ASICwillnotnormallyconsideranapplicationtotransfertrustpropertyexceptwherethepropertyisoutsidetheseStates,asit
exercisespowerstodealwithpropertyasalastresort,wherenootherremedyisavailable.Inanyevent,theabovelegislative
provisionsprovideacheaperandmoreconvenientremedyfornewtrustees(thanmakinganapplicationtoASIC).

IfthepropertyisinWA,ASIChasnoobjectiontoyouusingsection10oftheTrusteesAct1962(WA)whichdeemstheappointortobe
theconveyingpartyforthepurposesofregistration.

IfthepropertyisinQld,VicorWA,thenASICrecommendsyouprovidetherelevantstatelandtitlesofficeacopyofthe'Deedof
appointmentofnewtrustee'andrequestitvestthepropertyinthenewtrusteeundertherelevantprovision(requirementsformaking
sucharequestareusuallyavailableintheirPracticeManual/LodgingBook).

ASIConbehalfoftheCommonwealthhasnoobjectiontoTitlesOfficeRegistrarsexercisinganyoftheirpowerstoregisterpropertyin
anotherparty'sname,withoutASIC'sexecutionofatransfer.IfrequiredbytheTitlesOffice,ASICcanprovideyouwithaletter
confirmingitsposition(pleaseemailyourrequestandacurrenttitlesearchofthepropertytoproperty.law@asic.gov.au).

Youmayalsoreferthetitlesofficetothiswebpage.

3.ReinstatementbyASIC
IfthecompanywasderegisteredwithinthelastthreeyearsthenhavingthecompanyreinstatedbyASICismoreappropriatethan
applyingtoASICforatransfer(especiallyifthevalueofthepropertyexceedsthecostofASICreinstatement).

BeforemakinganapplicationforASICtodealwiththeproperty,youshouldaskviaasic.gov.au/questionifreinstatementofthe
companybyASICisavailable.Ifitisthenitwillbemoreconvenientandperhapsmorecosteffectiveforyou.

MoreinformationaboutreinstatementofthecompanybyASICcanbefoundhere.

HowtoapplytoASICforatransfertonewtrustee
Ifthealternativeremediesoutlinedabovearenotavailabletoyou(i.e.thepropertyislandlocatedoutsideofQueensland,Victoriaor
WesternAustraliaandASICreinstatementisunavailable)thenyoumaywishtoapplytoASIC'sPropertyLawGroupforatransferof
thepropertytothenewtrustee/s.

UsethisChecklisttoprepare,andthensubmit,yourapplicationtoASIC:
DownloadPDFChecklistTransferofPropertytoNewTrusteeunders601AF(PDF228KB)

Youwillalsoneedtocompletethisindemnity:Transfertonewtrustee.

http://asic.gov.au/for-business/closing-your-company/effects-of-deregistration/property-of-deregistered-companies/there-is-still-trust-property-registered-in-the-n 2/3
20/02/2017 There is still trust property registered in the name of a deregistered company | ASIC - Australian Securities and Investments Commission
InstructionsforsubmittingyourapplicationarecontainedintheChecklist.

Howlongwillittaketoassessyourapplication
ASICusuallymakesadecisionwithin28daysofreceiptofallrequestedmaterials.Youneedtotakethistimeframeintoaccountandif
necessary,rescheduleanytransactions(e.g.settlementdates)toincludethis28dayperiod.Delaysoccurwhenincomplete
applicationsaresubmitted.

Pleaseallowatleast21daysbeforeenquiringabouttheprogressofyourapplication.

Urgentapplications
Incertainsituations,ASICmayconsiderapplicationsonanurgentbasis(i.e.withinaspecificandshorttimeframe).However,ASICwill
onlydosoinexceptionalcircumstancesbecausethiswouldgivetheurgentapplicationpriorityoverotherapplicationslodgedinamore
timelymanner.

Applicantsmustthereforeclearlydemonstratethattheurgencyresultsfromfactorsbeyondtheirreasonablecontrolthattheycouldnot
havereasonablyforeseen.Settlementofacontractofsaleisnotasufficientbasisforurgentconsideration.

Doyouneedlegalrepresentation
WhileASICreceivesmanysatisfactoryapplicationsfromapplicantsdirectly,youmaywishtoconsiderseekingindependentlegal
advice.ASICisonlyabletoprovideyouwithguidelinesonhowtomaketheapplication.

Moreabouttheeffectofderegistration

MoreaboutapplicationstoASICtodealwithderegisteredcompanyproperty

ThisisonlyageneralguideastoASIC'sapproachtothepropertyandrightsthatpasstoASICandtheCommonwealthon
deregistrationofacompany.Thisdocumentdoesnotrepresentlegaladviceandshouldnotbeinterpretedassuch.Each
applicationorinquirywillbeconsideredonitsfactsanddecidedonitsindividualmerits,basedonalltheinformationavailableto
ASICatthetime.Weencourageyoutoseekyourownprofessionaladvicetofindouthowthelawapplyingtoderegistered
companiesaffectsyourindividualcircumstances.

http://asic.gov.au/for-business/closing-your-company/effects-of-deregistration/property-of-deregistered-companies/there-is-still-trust-property-registered-in-the-n 3/3