Family Trust

[Albereth]

This morning I head that Nyanda had been cleared of being involved in a company that had 'won' some work in Mpumulanga. Seems that he had donated all of his shares into a family trust.

I understand that trustees are able to make their own decisions about what to do with the assets of a trust. But I also understand that trustee's freedom of choices is somewhat influenced by the size of the gun pointed at their heads.

 

[blunomore]

Not sure what point you tried to make ??

 

[Jola]

Not sure what point you tried to make ??

Point is that the trust makes no difference, he should not have been cleared.

 

[blunomore]

Point is that the trust makes no difference, he should not have been cleared.

Was the official reason for clearing him that the shares are not in his name ?

 

[Jola]

Was the official reason for clearing him that the shares are not in his name ?

No, that he supposedly does not control the trust - but of course he does, as per the OP.

All family trusts are effectively controlled by the trust creator.

It's control that matters, not just shareholding.

 

[Albereth]

Not sure what point you tried to make ??

Point I am making is that setting up a family trust seems to be a fine way of avoiding some ethical 'dilemas'. To claim that Nyanda got rid of is shareholding in a company that was awarded a bunch of money may be technically correct. In reality it is subversion.

I wonder if the tax man has had a look at that donation?

 

[Albereth]

Was the official reason for clearing him that the shares are not in his name ?

I am sure that there are lots of reasons - the one that was report on was that he wasn't a share holder, or didn't own the company. But then the big mouth explaining all this went on to say that Nyanda has donated his shares to a family trust.