Commentary on Sections Requirements for member-nominated trustees and directors Section 242: Requirement for member-nominated directors of corporate trustees
883.This section sets out broadly the same requirements as section 241, except that it applies where every trustee of an occupational trust scheme is a company. In this case, the requirement is for at least one-third of the directors of each company to be member-nominated directors.
884.The effect of subsections (8) and (9) is to allow a company that is trustee in relation to more than one scheme to treat the schemes as if they were a single scheme for the purposes of meeting the member-nominated directors’ requirement. The company can however elect not to aggregate the schemes.
885.Subsection (10) provides that this section does not apply to an occupational trust scheme if the scheme is of a prescribed description.
886.Subsection (11) provides for civil penalties under section 10 of the Pensions Act 1995 (civil penalties) to apply to a company if the arrangements securing at least one-third member-nominated directors are not in place as required under subsection (1)(a) or are not being implemented.