In light of Colonial Case, PCG 2016/16, the Trust Deed should contain the following provisions:
- The trustee cannot create different rights or different classes of units;
- All units on an issue must have the same rights to receive income and capital of the trust;
- Units must be allocated for market value;
- All income and capital of the trust must be distributed in proportion to the unit holdings, i.e. there is no discretion held by the trustee;
- Partly paid units cannot be issued;
- The trust deed requires all unitholders to agree on the redemption of units and any redemption must be at market value;
- All valuations must be carried out by a valuer in accordance with the applicable ‘Australian Accounting principles’;
- The trustee cannot make gifts;
- The unanimous consent of all unitholders is required to vary the trust deed and the variation power should prohibit amendments to any of the above provisions