How $200k can be eroded from a director's retirement
plan.
The first rule of corporate structures is to ensure that
business dealings of the company are kept separate from personal
financial affairs. For obvious reasons (or maybe not so obvious to
those involved in the following case) and assuming the company has
been responsibly managed, this will help to prevent directors
risking their personal assets if things go bad.
We were appointed liquidators to a building contractor that
incurred debts of some $400,000. Shortly after our appointment the
company's accountant, advised us that we had inadvertently
frozen the director's personal bank account and share trading
account. Upon further investigation, we discovered that the
accounts were in fact in the company's name, however they were
accounts held by the company as trustee of the director's
self-managed super fund (SMSF).
