What is the difference between a company and a Unit Trust

hello my name's dr. Bret Davies what is

the difference between a company like a

proprietor limited company and a unit

trust they're both very similar they

once got units which are as the

commodity to know how much you own of

that unit trust and those got shares so

if there's 5,000 units and you own all

5000 you're the total owner of that unit

trust if there's a price but a company

and this 5000 shares on issue and you

own all of them will you own a HUD of a

set of the shareholding of the company

well what if you only owe let's say

1,000 units love you have 1/5 of the

unit trust what if you only own 1,000 of

the 5000 shares of the company well do I

have 1/5 of the company don't have

majority of the Trop unit trusts are

created over thousands of years when the

Norman Conquest came across from France

and attacked and took over Great Britain

trustful form became very popular from

that time on 1066

I think trust continue to develop since

then that unit trusts not much different

to what they were all those years ago

and they're created by the common law

they're created by non-government

intervention a unit trust is that type

of vehicle a company is completely

different a very modern vehicle only a

few hundred years old and you have to do

it through government so there's an act

of parliament called the Corporations

Act with many regulations from it if

they're the corporations that is the

second largest piece of legislation in

Australia what's the largest piece of


it's the income tax assessment acts

their larger taxes are more confusing

than companies law the Corporations Act

says it states very clearly how you form

a company and the regulator the

that looks after at the government

agency the looks after it is basic

australian securities investment

commission and you register your company

through that the companies are very

controlled you can't do much with them

compared with unit trusts you have a

trustee of a unit trust which you can

change with the company itself is the

entity a company has directors unit

holders do not have directors they just

have a trustee the unit holders are the

people that boss the trustee of the unit

trust around the shareholders the

viewlet boss the directors who then

direct how the company operates now when

you die your assets dealt with it you

will so let's have a look what happens

in your will I'll go to your will and

they'll have five thousand units and the

unit trust

well they do this through to your wife

or children or husband might have five

thousand shares where those shares will

also be gifted to the beneficiaries if

you die you have no interested the

company assets and the unit trust you do

so there's a proprietary interest right

we get a trust which you don't get in a

company lots of differences your to

trust and less regulation are a lot more

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