Commonwealth Consolidated Acts

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Voting by or on behalf of related party interested in proposed resolution

             (1)  At a general meeting, a vote on a proposed resolution under this Division must not be cast (in any capacity) by or on behalf of:

                     (a)  a related party of the corporation to whom the resolution would permit a financial benefit to be given; or

                     (b)  an associate of such a related party.

             (2)  Subsection (1) does not prevent the casting of a vote if:

                     (a)  it is cast by a person as a proxy appointed by writing that specifies how the proxy is to vote on the proposed resolution; and

                     (b)  it is not cast on behalf of a related party or associate of a kind referred to in subsection (1).

             (3)  The regulations may prescribe cases where subsection (1) does not apply.

             (4)  The Registrar may by writing declare that:

                     (a)  subsection (1) does not apply to a specified proposed resolution; or

                     (b)  subsection (1) does not prevent the casting of a vote, on a specified proposed resolution, by a specified entity, or on behalf of a specified entity;

but may only do so if satisfied that the declaration will not cause unfair prejudice to the interests of any member of the corporation.

             (5)  A declaration in force under subsection (4) has effect accordingly.

             (6)  A declaration under subsection (4) is not a legislative instrument.

             (7)  If a vote is cast in contravention of subsection (1), the related party or associate, as the case may be, contravenes this subsection, whether or not the proposed resolution is passed.

Penalty:  200 penalty units or imprisonment for 5 years, or both.

             (8)  For the purposes of this section, a vote is cast on behalf of an entity if, and only if, it is cast:

                     (a)  as proxy for the entity; or

                     (b)  otherwise on behalf of the entity; or

                     (c)  in respect of a share in respect of which the entity has:

                              (i)  power to vote; or

                             (ii)  power to exercise, or control the exercise of, a right to vote.

             (9)  Subject to subsection 290-40(1), a contravention of this section does not affect the validity of a resolution.

           (10)  This section has effect despite:

                     (a)  anything else in:

                              (i)  this Act; or

                             (ii)  any other law (including the general law) of a State or Territory; or

                     (b)  anything in a body corporate's constitution.

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