Question 1

Who acts as Chair?

Accepted Answer

The Leading Member of the Fund is the chair and has the casting vote in the event of any locked vote on the Board. The Leading Member has a veto on any Board decision.

Question 2

What happens if the company registration details I have entered are incorrect?

Accepted Answer

If your application is declined by ASIC, a member of our team will be in contact with you. If your registration is successful however you have provided us with incorrect company establishment details, ASIC may charge a fee to make changes. Please ensure ALL information has been checked prior to finalising the interview process, including checking that the company name you would like to register is available and spelt correctly. We recommend checking this on the ASIC professional registers available at www.asic.gov.au.

Question 3

Will you register the company for me?

Accepted Answer

Yes, we have a direct integration with the ASIC web services application. The ASIC registration fee is included in your document price - no GST has been charged on this amount. If you do not wish for us to register the company for you, please select "no" where this question is asked throughout the interview process.

Question 4

Do you provide a completed Form 201 with company documents?

Accepted Answer

No. From October 2019, Australian company registrations must be completed online. The paper Form 201 is no longer available and not required. All answers are sent directly to ASIC for registration.

Question 5

What happens on death of a member / Director of the Leading Member SMSF corporate trustee?

Accepted Answer

On death of a member, the Board of Directors must appoint the deceased members LPR as a Director or lose its trusteeship. In addition, the deceased members LPR as a Director has the only vote in relation to the payment of the deceased member's death benefits.

Question 6

What can the Leading Member control?

Accepted Answer

The Leading Member holds a powerful position in the Company and owns all the shares and had Board veto power. In addition, the Leading Member is the only person who can appoint or remove a Director.

Question 7

How long does this document take to assemble?

Accepted Answer

Depending on the complexity of the data, this document should take approximately 15-30 secs (after ASIC payment) to assemble. If you experience timing outside of this please contact Support via the Surge app, alternatively please read this article for troubleshooting tips https://info.lightyeardocs.com.au/supportcentre/troubleshooting-longer-assembly-times-timeouts .

Question 8

Is Proportional Voting an option?

Accepted Answer

The LYD special purpose Trustee company generally provides for one director – one vote rule but a proportional rule based on representative member account balances can be implemented by the directors.

Question 9

What happens when the Leading Member dies?

Accepted Answer

The LYD Leading Member SMSF Trust Deed provides succession in terms of the Leading Member and on the death of the Leading Member, these shares are cancelled and new shares issued to the incoming Leading Member.

Question 10

Is this document a legal document?

Accepted Answer

All master documents have been signed off by LY Legal lawyers. Tony Anamourlis of LY Legal advises that “at no time, due to inbuilt legal protection and security measures can a user change or amend a document on the LYD platform that has been signed off by a practicing solicitor. To do so would result in the user drafting a document of a legal nature and engaging in the provision of legal services. In addition, it would be a breach of copyright. In our opinion when completing the form fields through the LYD platform, users and their employees are merely carrying out an administrative task which is not the provision of legal advice.”

However in some complex areas such as the insertion of a varied range of client instructions into a Will or other such documents the user must be mindful of the extent to which a document is being drafted by the user rather than merely the administrative task of completing a form where the relevant fields are inserted into the reviewed and signed legal document provided by LY Legal.

The above advice is born out of numerous cases dating back to Re Sanderson, Ex parte Law Institute of Victoria [1927] VLR 394, 397 where the Court held:

“if a person does a thing usually done by a solicitor, and does it in such a way as to lead to the reasonable inference that he is a solicitor – if he combines professing to be a solicitor with action usually taken by a solicitor – I think he then does act as a solicitor.”

Likewise in ACCC v Murray (2002) 121 FCR 428, 448 where Murray was building a franchise business that involved the legal writing and drafting of Wills from scratch based on the client’s personal circumstances. The Court held that this process was legal work.

Question 11

Is the document easy to read?

Accepted Answer

All LYD products are written in plain English and assessed for readability. If at any time you come across any errors, please contact support@lyd.com.au.

Question 12

What lawyers sign off on LYD documents?

Accepted Answer

All LYD documents are prepared and signed off by LY Legal.

Question 13

Are the LYD documents reviewed regularly?

Accepted Answer

All LYD documents form part of the LYD internal review process. We review all documents at least annually or when required to do so due to changes in legislation. Further details of this process and a review schedule is include on this website.

Question 14

Can I get a sample of this document?

Accepted Answer

Yes, please email support@lyd.com.au to request a sample document for you to review.

Leading Member SMSF Special Purpose Trustee Company