(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: Section 228 defines related party , section 9 defines entity ,
section 50AA defines control and section 229 affects the meaning of
giving a financial benefit .
(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.