Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]


Need for member approval for financial benefit

             (1)  For an Aboriginal and Torres Strait Islander corporation, or an entity that the corporation controls, to give a financial benefit to a related party of the corporation:

                     (a)  the corporation or entity must:

                              (i)  obtain the approval of the corporation's members in the way set out in Division 290; and

                             (ii)  give the benefit within 15 months after the approval; or

                     (b)  the giving of the benefit must fall within an exception set out in Division 287.

Note:          Section 293-1 defines related party , section 700-1 defines entity , section 689-25 defines control and section 293-5 affects the meaning of giving a financial benefit .

             (2)  If:

                     (a)  the giving of the benefit is required by a contract; and

                     (b)  the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and

                     (c)  the contract was made:

                              (i)  within 15 months after that approval; or

                             (ii)  before that approval, if the contract was conditional on the approval being obtained;

member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.

AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback