(1)

For a public company, or an entity that the public company controls, to give a financial benefit to a related party of the public company:

(a)

the public company or entity must:

(i)

obtain the approval of the public company's members in the way set out in sections 217 to 227; 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 sections 210 to 216.

Note: Section 228 defines related party, section 9 defines entity, section 55AA defines control and section 229 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.