30/03/2016

If you have a standard company that is ONLY acting as the trustee of a self managed superannuation fund then you are missing out on the benefits of a special purpose company.

ASIC provide a cheaper ASIC fee where a company is established as, or has the constitution updated to become, a special purpose company. This type of company must have a constitution which includes particular clauses that are specific to self managed superannuation funds, such as a clause prohibiting the company from distributing income to members before retirement.

How about if the company is already a special purpose company? – wait there’s more!

If the constitution is of the older generation then it may simply be out of touch, so update it before you’re out of time! Ensuring that your constitution is modern will assist in guaranteeing that the rules governing the company are appropriate for the current commercial climate, this also assists with preventing delays where your directors wish to utilise the company in a particular way but the constitution needs to be updated first.

Updating a company constitution involves no stamp duty and attracts no income tax or capital gains tax.

If you’re not sure if your company constitution is out of touch, give us a call and we will help you before you’re out of time!

For further information, please contact Townsends Business & Corporate Lawyers on (02) 8296 6222.