A partnership of trusts is not an uncommon structure for the operation of a medical practice. But are you aware that at law there is a rule against self-dealing?
Now consider for a moment the not uncommon structure for the ownership and operation of a medical practice where a company was incorporated (A Co. Pty Ltd) by the medical practitioners, whereas both medical practitioners where the shareholders and directors of this company and each medical practitioner established a trust and each practitioner appointed A Co. Pty Ltd as the trustee of each practitioner’s respective trust. Now as is good practice the practitioners enter into a partnership agreement through their respective trusts with A Co. Pty Ltd executing the agreement in its various capacities as trustee for the respective trusts.Click on the link for the rest of this article
