How to create a trust shareholder

For a step by step overview have a look at our video on how to create a trust shareholder in Orchestra.

New Zealand

Under 'Who can be a shareholder', The New Zealand Companies Office states:

You can't register an unincorporated trust, for example, a family trust. Instead you must register each trustee as holding shares jointly. Some legislation — for example, the Charitable Trusts Act 1957 and the Maori Land Act 1993 — does allow for an exception to this rule. In this case, seek legal advice before registering a new shareholder.

Australia

Under 'What is a member?', the Australian Securities & Investments Commission (ASIC) states:

Estates and trusts cannot hold shares in their own right – they must nominate an executor or a trustee.

Entering a shareholder or a member that is a trust

When you select the stakeholder type for Trust you get access to enter the Direct parties to the shareholding (the trustees of the Trust) by scrolling to the bottom of the form.

Direct parties

Direct parties can be of the type "individual" or "company".

The fields required for each direct party are:

• Type
• NZ Business Number (NZBN), if the type is "company" and a New Zealand registered company
• Name
• Registered address

Use the Save button to lock in the details of each Direct party you enter. The Stakeholder name will be automatically generated and populated as you save each Direct party. When you've finished completing the form (Entity registered address is a compulsory field) you will also need to Save.

New Zealand

Below is an example of what a trust shareholding looks like on the New Zealand Companies Office. It is held in the names of the trustees of the trust.

Within Orchestra, the above entity would have the following structure.

• Bright Company Limited & Joseph Banks (Trust)
  • Direct parties:
    • Bright Company Limited (Company)
    • Joseph Banks (Individual)