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CORPORATIONS ACT 2001 - SECT 1234A

Requirement for segregated application of assets of sub - funds

  (1)   The assets of a sub - fund of a CCIV must not be applied, or dealt with, whether directly or indirectly:

  (a)   subject to paragraph   (b), for any purpose other than a purpose covered by section   1234B; or

  (b)   for a purpose prescribed by regulations made for the purposes of this paragraph.

Note:   For the consequences of a contravention of this requirement, see section   1234F.

  (2)   Subsection   (1) does not apply to:

  (a)   money or property to which section   1234 applies; or

  (b)   assets of a sub - fund of the CCIV, to the extent the assets consist of property to which section   1233K (about property that has to be converted into money etc.) applies.

Note:   For paragraph   (b), see instead section   1234C.

  (3)   The assets of 2 or more sub - funds of a CCIV must not be applied jointly to acquire a single item of property of the CCIV.

Note:   A single item of property that forms part of the assets of 2 or more sub - funds must be converted into money or other fungible property: see section   1233K.

Liquidators

  (4)   However, a liquidator or provisional liquidator of a sub - fund of a CCIV may:

  (a)   make a disposition of assets of the sub - fund that is an exempt disposition for the purposes of subsection   468(2), as that subsection applies to the sub - fund under Division   5 of Part   8B.6; or

  (b)   disclaim property of a sub - fund under Division   7A of Part   5.6, as that Division applies to the sub - fund under Division   5 of Part   8B.6.


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