Commonwealth Consolidated Acts

[Index] [Table] [Search] [Search this Act] [Notes] [Noteup] [Previous] [Next] [Download] [Help]


Need for member approval for financial benefit

  (1)   For a public company, or an entity that the public company controls, to give a financial benefit to a related party of the public company:

  (a)   the public company or entity must:

  (i)   obtain the approval of the public company's members in the way set out in sections   217 to 227; and

  (ii)   give the benefit within 15 months after the approval; or

  (b)   the giving of the benefit must fall within an exception set out in sections   210 to 216.

Note 1:   For the criminal liability of a person dishonestly involved in a contravention of this subsection, see subsection   209(3).

Note 2:   This section applies to a CCIV in a modified form: see section   1227A.

  (2)   If:

  (a)   the giving of the benefit is required by a contract; and

  (b)   the making of the contract was approved in accordance with subparagraph   (1)(a)(i) as a financial benefit given to the related party; and

  (c)   the contract was made:

  (i)   within 15 months after that approval; or

  (ii)   before that approval, if the contract was conditional on the approval being obtained;

member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.

AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback