Corporations Legislation Amendment (Simpler Regulatory System) Act 2007 (101 of 2007)

Schedule 1   Amendments

Part 2   Amendments commencing on 1 July 2007

Corporations Act 2001

190   Section 213

Repeal the section, substitute:

213 Small amounts given to related entity

(1) Member approval is not needed to give a financial benefit to a related party in a financial year if the total of the following amounts or values is less than or equal to the amount prescribed by the regulations for the purposes of this section:

(a) the amount or value of the financial benefit;

(b) the total of all other amounts or values of financial benefits given to the related party, in the financial year, for which member approval was not needed because of this section.

(2) In working out the total of the amounts or values referred to in paragraphs (1)(a) and (b):

(a) add in all amounts or values of financial benefits given to the related party in the financial year by:

(i) the public company or entity; and

(ii) any entities controlled by the public company or entity; and

(b) disregard:

(i) amounts that have been repaid; and

(ii) amounts that fall under any other exception in this Part.

For the purposes of this subsection, the time at which the entity must be controlled by the public company is the time at which the financial benefit is given.