Indeed, a trust can hold the membership of a close corporation.
In terms of the Close Corporation Act, a Close Corporation must at least have one but no more than ten members. The Act was amended, and this meant that an inter vivos trust can now hold membership in a Close Corporation, provided that no juristic person (like a company) is a beneficiary of the trust.
The amendment of the Close Corporations Act also meant that the number of natural persons who are beneficiaries in the trust, when added to the number of the other members of the trust must not exceed ten persons. Once the number of the beneficiaries when added to the other members of the trust exceed ten persons, then the trust shall not be entitled to be a member any longer.
If the trust holds 100% membership of the Trust that is in order too.
We advise that you that is the wiser decision to transfer the membership of your corporation to a trust instead of owning it in your own name. The reason for this is that, if the membership is in your own personal name, your creditors can attach your right, title and interest into the Close Corporation as an asset. That way your personal creditors can get to your corporation.
It would be better if the membership is held by a trust because then your personal creditors cannot attach the membership.
We can assist with the registration of a trust for you so that we can transfer the membership of your Close Corporation to the trust. Contact us for more information.