Purpose

• Ensure your business can be preserved over multiple generations
• Prevent shareholiding from being framented i.e your descendants become minority shareholders after few rounds of distribution from you to your children then to your grandchildren.
• You may prevent your successors for selling their share to outsiders.
• You can decide how and who to receive the dividends from the business even after your demise.

• Settlor is the person who sets up the trust and transfers asset into it.
• Trustee is the trust corporation which holds the shares of the business on trust for the benefit of the beneficiaries. It has a fiduciary duty to look after the interest of the beneficiaries
• Protective commitee is a body of persons appointed by the Settlor to supervise the Trustee as a watch dog and can be given power to decide on certain issues for example approval of a claim by beneficiary.
• Trust deed is a legal document which contains the settlor’s wishes and instructions and which the Trustee must abide by it.
• While the Trustee is holding the shares of the business, any dividends declared by the company shall be paid into the trust. Trustee will then distribute the funds in accordance with the instructions stipulated in the Trust Deed.
• The Trustee will not be involved in the daily management of the company. Instead the Board of Directors will be appointed by the Trustee after seeking advice from the Protective Committee.