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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 784

Grant of licence to body corporate

(1) This section has effect where a body corporate applies for a licence. (2) ASIC must grant the licence if:

(a)
the application was made in accordance with section 782; and

(b)
the applicant is not an externally-administered body corporate; and

(c)
ASIC is satisfied that the educational qualifications and experience of each responsible officer of the applicant are adequate having regard to the duties that the officer would perform in connection with the holding of the licence; and

(d)
ASIC has no reason to believe that the applicant will not perform efficiently, honestly and fairly the duties of a holder of a licence of the kind applied for; and

(e)
if the licence applied for is a licence to operate a managed investment scheme or schemes, the applicant meets the requirements of subsection (2A), and any additional requirements determined by ASIC under subsection (2B).

(2A) For the purpose of paragraph (2)(e), ASIC must be satisfied that the value of the net tangible assets of the applicant is and will be maintained at a minimum of $50,000 or, where the value of all scheme property is greater than $10,000,000, an amount equal to 0.5% of those assets shown in the latest accounts of the scheme lodged with ASIC, up to a maximum of $5,000,000. (2B) ASIC may determine additional requirements for the purpose of paragraph (2)(e), including, but not limited to, a requirement that scheme property be held by an agent in particular circumstances. (2C) In this section:

"net tangible assets" means the total tangible assets of the applicant, including any guarantee approved by ASIC, less any adjusted liabilities as shown in the latest accounts of the applicant lodged with ASIC.

(2D) ASIC, or a member of ASIC, may exempt an applicant from the requirements of subsection (2A). This power may not be delegated. ASIC is to provide details of any exemptions granted under this section in its annual report. (3) Otherwise, ASIC must refuse the application. (4) In determining whether or not it has reason to believe as mentioned in paragraph (2)(d), ASIC must have regard, in relation to each responsible officer of the applicant, to:

(a)
whether or not the officer is an insolvent under administration; and

(b)
any conviction of the officer, during the 10 years ending on the day of the application, of serious fraud; and

(c)
any reason ASIC has to believe that the officer is not of good fame and character; and

(d)
any reason ASIC has to believe that the officer will not perform efficiently, honestly and fairly the duties that the officer would perform in connection with the holding of the licence.



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