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CORPORATIONS ACT 2001 - SECT 1233L

Meaning of liabilities of a sub-fund

             (1)  The liabilities of a sub-fund of a CCIV at a particular time are the following:

                     (a)  liabilities of the CCIV that relate solely to the business of the sub-fund;

                     (b)  liabilities of the CCIV not covered by paragraph (a), to the extent that it is fair and reasonable in the circumstances to allocate the liability to the sub-fund at the time having regard to the following matters:

                              (i)  the extent to which the liability, when it arose, related to the business of the sub-fund;

                             (ii)  the extent to which assets of the sub-fund, and assets of other sub-funds, of the CCIV have been applied to meet the liability;

                            (iii)  the regulations (if any) made for the purposes of subsection (4).

Note:          Section 1233A is about references to the liabilities of a CCIV.

Effect of an allocation determination

             (2)  Despite subsection (1), if:

                     (a)  a particular proportion of a liability of a CCIV is allocated to a sub-fund of the CCIV at a time under a determination made under section 1233M (including a determination as varied under section 1233N); and

                     (b)  the determination is operative at the time (see subsection 1233M(4));

that proportion of the liability is taken to form part of the liabilities of the sub-fund at that time.

Effect of a Court order about an arrangement or reconstruction

             (3)  Despite subsections (1) and (2), the liabilities of a sub-fund of a CCIV:

                     (a)  include liabilities that, in accordance with a Court order made under section 1235F (about arrangements and reconstructions of sub-funds), are to be liabilities of the sub-fund; and

                     (b)  do not include liabilities that, in accordance with an order made under that section, are no longer to be liabilities of the sub-fund.

Regulations

             (4)  The regulations may provide for and in relation to matters to be considered in determining the extent to which a liability of a CCIV forms part of the liabilities of a sub-fund of the CCIV.



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