SMSF members facing bankruptcy have the potential to seek permission from the Federal Court to retain their roles as directors of an SMSF corporate trustee, provided the funds administration remains in good standing, according to an SMSF legal expert.
Traditionally with bankruptcy there was really only two choices: if the member of an SMSF went bankrupt, you could cease to be a trustee of that fund and get a small APRA (Australian Prudential Regulation Authority) fund by appointing an approved trustee or you could roll out to a large APRA fund, DBA Lawyers principal Dan Butler said during a recent webinar hosted by the firm.
However, in recent times theres been another option, he added, noting seeking approval from the Federal Court to m…
Read the full article at: https://smsmagazine.com.au/news/2023/10/19/court-can-provide-bankruptcy-relief/