Commonwealth Numbered Acts

CORPORATIONS ACT 1989 No. 109 of 1989 - SECT 402

402. (1) An investment company shall not underwrite any issue of authorised
securities to an amount that, when added to the amount or amounts (if any) to
which it has previously underwritten a current issue or issues of other
authorised securities (not being an amount or amounts in respect of which the
underwriting obligation has been discharged), exceeds an amount equivalent to
40% of its net tangible assets.

(2) An investment company shall not underwrite any issue of non-authorised
securities to an amount that, when added to the amount or amounts (if any) to
which it has previously underwritten a current issue or issues of other
non-authorised securities (not being an amount or amounts in respect of which
the underwriting obligation has been discharged), exceeds an amount equivalent
to 20% of its net tangible assets.

(3) Where:

   (a)  an investment company has underwritten any issue of securities and, in
        relation to the underwriting, has not contravened subsection (1) or
        (2); and

   (b)  the investment company, as a result of the underwriting, invests in a
        body corporate contrary to section 401; the investment company shall
        be deemed not to have contravened a provision of that section by
        reason of so investing in the body corporate if, at the end of 12
        months after so investing:

   (c)  the amount invested by it in the body corporate does not exceed an
        amount equivalent to 10% of the net tangible assets of the investment
        company; and

   (d)  it does not hold more than 5% of the subscribed ordinary share capital
        of the body corporate.

(4) This section applies in relation to sub-underwriting as if the
sub-underwriting were underwriting.

(5) In this section:

"authorised securities" means securities in which trustees are authorised by
an Australian law, or by a law of New Zealand, to invest trust funds in their
hands;

"non-authorised securities" means securities other than authorised securities.