Commonwealth Repealed Acts

This legislation has been repealed.

CORPORATIONS LAW - SECT 601LC

Chapter 2E applies as if section 208 were replaced by the following section:

SECT 208 Need for member approval for financial benefit

(1)

If all the following conditions are satisfied in relation to a financial benefit:

(a)

the benefit is given by:

(i)

the responsible entity of a registered scheme; or

(ii)

an entity that the responsible entity controls; or

(iii)

an agent of, or person engaged by, the responsible entity

(b)

the benefit either:

(i)

is given out of the scheme property; or

(ii)

could endanger the scheme property

(c)

the benefit is given to:

(i)

the person or a related party; or

(ii)

another person referred to in paragraph (a) or a related party of that person;

then, for the person referred to in paragraph (a) to give the benefit, either:

(d)

the person referred to in paragraph (a) must:

(i)

obtain the approval of the scheme's members in the way set out in sections 217 to 227; and

(ii)

give the benefit within 15 months after the approval; or

(e)

the giving of the benefit must fall within an exception set out in sections 210 to 216.

Note: Section 228 defines related party, section 191 defines entity, section 191 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)(d)(i) as a financial benefit given to the entity or 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.

(3)

Subsection (1) does not prevent the responsible entity from paying itself fees, and exercising rights to an indemnity, as provided for in the scheme's constitution under subsection 601GA(2).