Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW- SECT 229

Giving a financial benefit

 
 
(1)
In determining whether a financial benefit is
given for the purposes of this Chapter: 
 
 
 
(a)
give a broad interpretation to financial benefits being
given, even if criminal or civil penalties may be involved; and

(b)
the economic and commercial substance of conduct is to
prevail over its legal form; and

(c)
disregard any consideration that is or may be given for the
benefit, even if the consideration is adequate. 

 
 
(2)
Giving a financial benefit includes
the following: 
 
 

(a)
giving a financial benefit indirectly, for example, through 1 or
more interposed entities

(b)
giving a financial benefit by making an informal agreement, oral
agreement or an agreement that has no binding force

(c)
giving a financial benefit that does not involve paying money
(for example by conferring a financial advantage). 

 
 
(3)
The following are examples of giving a
financial benefit to a related party: 
 
 
 
(a)
giving or providing the related party finance or
property

(b)
buying an asset from or selling an asset to the related
party

(c)
leasing an asset from or to the related party

(d)
supplying services to or receiving services from the related
party

(e)
issuing securities or granting an option to the related
party

(f)
taking up or releasing an obligation of the related party.