Commonwealth Consolidated Acts

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Need for member approval for financial benefit

             (1)  Section 208 applies in relation to a retail CCIV as if:

                     (a)  the members whose approval is required to be obtained under subparagraph 208(1)(a)(i) were the members of the sub-fund of the CCIV that would be affected by the giving of the financial benefit; and

                     (b)  the member approval mentioned in paragraph (a) were required to be given in the way set out in sections 217 to 227 (as modified by this Part).

Note 1:       For the civil and criminal liability of a person involved in a contravention of section 208 as it applies to a retail CCIV under this section, see section 209.

Note 2:       For provisions about meetings of members of sub-funds, see section 1228A.

Note 3:       Some kinds of financial benefits are prohibited by sections 199A to 199C. For CCIVs, those sections have an extended application: see section 1225E.

             (2)  If the giving of a financial benefit would affect 2 or more sub-funds of the CCIV, paragraph 208(1)(a) applies as if it required the CCIV or entity to:

                     (a)  obtain the approval of each affected sub-fund in the way mentioned in subsection (1) of this section; and

                     (b)  give the benefit within 15 months after the first such approval is given.

Exception for certain fees and indemnities payable to corporate director

             (3)  Subsection 208(1) does not apply in relation to a financial benefit if:

                     (a)  the financial benefit is fees, or an indemnity, to be given to the corporate director by the CCIV; and

                     (b)  the corporate director is entitled to the fees, or the indemnity, under provisions of the constitution; and

                     (c)  the provisions comply with section 1224N (about fees and indemnities must be available only in relation to the proper performance of duties).

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