Membership and trustee rules

Membership/trustee rules
Fund type	Individual trustees	Corporate trustee
1 member	Member is one of two trustees and either a relative or not an employee of the other trustee	Member is sole director of the corporate trustee, or one of two directors where the member is either a relative or not an employee of the other director
2 – 4 members	Each trustee is a member and each member is a trustee	Each director of the corporate trustee is a member and each member is a director
All SMSFs	Must have fewer than 5 members No member is an employee of another member unless they are relatives No trustee receives remuneration from the fund for any services performed in relation to the fund except where the trustee/director is appropriately qualified and licensed, the work is carried out in the ordinary course of business and the remuneration received is not more favourable than an arms-length arrangement Circumstances where legal personal representative (LPR) may replace a member as trustee/director: upon death until the death benefits in fund begin to be paid; member is under a legal disability; or LPR has enduring power of attorney A parent or guardian may replace a member who is under a legal disability because of age as trustee/director.

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