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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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