This book provides a comprehensive analysis of Australian commercial trusts, from private trading trusts through to publicly listed managed investment schemes, as sophisticated modern business entities. The use of these trusts is widespread and they hold immense wealth; however, they also present serious legal issues for those who are involved with them. While companies are regulated by a highly evolved statutory regime, commercial trusts are not.
Commercial Trusts examines, in an applied way, the Australian commercial trust as a dynamic and modern enterprise entity operating, in effect, as a surrogate company. The focus is on the legal and insolvency risk position of the three main classes of participant, that is, unit holders, corporate trustees and creditors and other ‘outsiders’.
The appendices contain state-of-the-art due diligence checklists, with explanations for every step, and sample protective clauses for inclusion in commercial trust instruments and third party contracts (including financing arrangements), in all cases drawn on best practice models in current use in the Australian market, enhanced to address the issues dealt with in the substantive content. This book is indispensable for any lawyer advising those involved in or dealing with commercial trusts.
Please note the book does not deal with the taxation treatment of commercial trusts.
Table of contents
Chapter 1 Introduction: Concepts and Principles
Chapter 2 Evolution of the Australian Commercial Trust
Chapter 3 Legal Risks of the Beneficiary as an Equity Investor
Chapter 4 Legal Risks of the Commercial Trustee
Chapter 5 Legal Risks of the Trust Creditor
Chapter 6 The Commercial Trust in Insolvency
Chapter 7 Conclusion: Reforming the Commercial Trust
Appendix 1 Extracts from the Corporations Act
Appendix 2 Selected reports into the law affecting commercial trusts
Appendix 3 Protecting equity investors
Appendix 4 Protecting the trustee
Appendix 5 Protecting creditors and other counterparties
Appendix 6 The Blackacre Trust hypothetical