Corporate Trustee deregistered by ASIC

[MasterInvestor]

Hi there
I have a friend (no its not me, really) who has many properties owned in a trust structure. He is slack in the area of paperwork, and forgot to pay the annual ASIC fees for the company registration. This company is the trustee of his trust which owns all his property. ASIC have now de-registered the company, and it has been that way for 6 months.

My questions are:
1) what effect will this have on his trust. It basically doesn't have a trustee anymore.
2) what effect will this have on him getting mortgages in a new company trust. The lender will see his is director of a company that has been deregistered.

many thanx

MI

 

[Mry]

1) what effect will this have on his trust. It basically doesn't have a trustee anymore.

Basically, the company and its assets vest with ASIC. Since that is probably only $2, not big loss, but it also means that ASIC was responsible for managing your trust. Less scrupulous people might retrospectively change the trustee to someone else at the date of registration, but the correct way to go ahead is to notify ASIC that the company acted as a trustee during the time it was deregistered and change the trustee ASAP.

A few years ago I had a client who was operating in a trust with a company as trustee. The guy didn't pay his ASIC bills and the company was deregistered. A disgruntled employee found out and told ASIC, and ASIC sent a big letter to him that required a lawyer and almost ten grand to fix up.

2) what effect will this have on him getting mortgages in a new company trust. The lender will see his is director of a company that has been deregistered.

The loan application will probably be unsuccessful. It would be like applying for loans in the name of a deceased person. I would think that loan applications made in the name of a company known to be deregistered would be somewhat fraudulent on the part of the person applying for the loan, or somewhat foolish.

 

[MasterInvestor]

Thanks for your response Mry.

With the loans, he is not planning to get a loan in the company that has been deregistered, but is setting up a new company and a new trust. I am just wondering if his credit file will show he has been a director of a company that has been deregistered, and the lenders will pick up of this. I guess this wouldn't look good to a lender.

Regards

MI

 

[duncan_m]

ASIC have now de-registered the company, and it has been that way for 6 months.

Its a simple process to pay the ASIC fees and get the deregistration removed.. I know, it happened to me too It can take a month or two for them to process the paperwork.

I had no subsequent ill-effects on my ability to borrow.

 

[alexlee]

With the loans, he is not planning to get a loan in the company that has been deregistered, but is setting up a new company and a new trust. I am just wondering if his credit file will show he has been a director of a company that has been deregistered, and the lenders will pick up of this. I guess this wouldn't look good to a lender.

Can't imagine a credit file has directorships on it? In any case companies are deregistered for plenty of legitimate reasons. Deregistration is not bankruptcy.
Alex

 

[willy1111]

Hi Alex,

Yes Credit files (baycorp) do have directorships on them - it shows up if you are a director of a company and names the company you are a director of.

They also list disqualified directorships and any previous directorships.

A simple explanation for why the deregistration occured would suffice I would reckon.