Queensland Consolidated Regulations

QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION (MINIMUM FINANCIAL REQUIREMENTS) REGULATION 2018 - REG 17C

17C Who is eligible to be covenantor under deed of covenant and assurance

(1) A person is eligible to enter a deed of covenant and assurance as a covenantor in favour of a licensee that is a corporation, if the person is—

(a) a director of the corporation; or

(b) a related body corporate of the corporation.

(2) Also, a person is eligible to enter a deed of covenant and assurance as a covenantor in favour of a licensee if the person is—

(a) for a licensee who is a trustee of a trust—a beneficiary of the trust; or

(b) for a licensee who is, or is to be, an entity carrying on business in a partnership—another partner in the partnership; or

(c) for a licensee that is a group company—another group company in the same corporate group.

(3) However, a person is only eligible under subsection (1) or (2) if the person holds net tangible assets, worked out under division 1 as if a reference to a licensee were a reference to the person, of an amount that is at least equal to the value of the deed of covenant asset.

(4) In this section—

"related body corporate" , of a corporation, means—

(a) a related body corporate of the corporation under the Corporations Act , section 50 ; or

(b) another corporation that has the same shareholders or directors as the corporation.