Corporations Act 2001

CHAPTER 2E - RELATED PARTY TRANSACTIONS  

Note: This Chapter applies to a CCIV with modifications: see Division 5 of Part 8B.3 .

PART 2E.1 - MEMBER APPROVAL NEEDED FOR RELATED PARTY BENEFIT  

Division 2 - Exceptions to the requirement for member approval  

SECTION 214   BENEFIT TO OR BY CLOSELY-HELD SUBSIDIARY  

214(1)   [ When approval not needed]  

Member approval is not needed to give a financial benefit if the benefit is given:

(a) by a body corporate to a closely-held subsidiary of the body; or

(b) by a closely-held subsidiary of a body corporate to the body or an entity it controls.

214(2)   [ ``closely-held subsidiary'']  

For the purposes of this section, a body corporate is a closely-held subsidiary of another body corporate if, and only if, no member of the first-mentioned body is a person other than:

(a) the other body; or

(b) a nominee of the other body; or

(c) a body corporate that is a closely-held subsidiary of the other body because of any other application or applications of this subsection; or

(d) a nominee of a body referred to in paragraph (c).

214(3)   [ Disregard non-voting shares]  

For the purposes of subsection (2), disregard shares that are not voting shares.