Corporate trustees—articles of association of a pension trustee company
Produced in partnership with Mark Ridler of Hill Dickinson

The following Pensions practice note produced in partnership with Mark Ridler of Hill Dickinson provides comprehensive and up to date legal information covering:

  • Corporate trustees—articles of association of a pension trustee company
  • The articles of association of a private limited trustee company
  • Key areas for consideration in the articles
  • Objects
  • Conduct of trustee directors’ business
  • The appointment and removal of trustee directors
  • Maximum and minimum number of directors
  • Directors’ fees
  • Disqualification of trustee directors
  • Trustee directors’ interests and conflicts
  • More...

Corporate trustees—articles of association of a pension trustee company

THIS PRACTICE NOTE APPLIES TO TRUST-BASED OCCUPATIONAL PENSION SCHEMES

Occupational pension scheme trustees will usually be either individual trustees or corporate trustees. A corporate trustee will usually be a private limited company governed by the Companies Act 2006 (CA 2006). Corporate trustees are commonly appointed in one of two ways:

  1. instead of a board of individual trustees of a particular scheme. A trustee company will be incorporated to typically act only as the sole trustee of one scheme and the directors of the trustee company will in effect act in place of the board of individual trustees. The directors will commonly be referred to as trustees, although technically they are directors and would be better described as ‘trustee directors’. An independent professional trustee company can be appointed as a trustee director to a trustee company of this type

  2. independent professional trustees are usually constituted as limited companies. They may be appointed alongside other individual trustees or appointed as sole trustees. The person who undertakes the day-to-day functions of the corporate trustee may or may not be a director of the trustee company

This Practice Note relates to the first type of trustee referred to above.

Reasons for utilising a corporate trustee include:

  1. to take advantage of the corporate veil. General liabilities would fall on the trustee company and not

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