Superannuation Industry (Supervision) Regulations 1994

PART 4 - MANAGEMENT AND TRUSTEESHIP OF SUPERANNUATION ENTITIES  

Division 4.2 - Operating standards  

REGULATION 4.08   OPERATING STANDARD - VOTING RULE WHERE EQUAL REPRESENTATION APPLIES  

4.08(1)   [Application of standard]  

For the purposes of subsection 31(1) of the Act, the standard stated in subregulation (3) is applicable to the operation of standard employer-sponsored funds that must comply:

(a) under subsection 91(4) or 93(4) of the Act - with the basic equal representation rules; or

(b) under subsection 90(3) of the Act - with either:

(i) the basic equal representation rules; or

(ii) the alternative agreed representation rule set out in subsection 90(4) of the Act; or

(c) under subsection 92(4) of the Act - with either:

(i) the basic equal representation rules; or

(ii) the alternative agreed representation rule set out in subsection 92(5) of the Act.

4.08(2)   [When standard not applicable]  

Despite subregulation (1), the standard stated in subregulation (3) is not applicable:

(a) to the operation of standard employer-sponsored funds that comply with the alternative agreed representation rule set out in subsection 90(4) or 92(5) of the Act; or

(b) to a decision of a delegate of the individual trustees or of the board of directors of the corporate trustee of the fund if the delegation was approved by at least two-thirds of the total number of the trustees or directors.

4.08(3)   [Vote by two-thirds of trustees or directors]  

A decision of:

(a) the individual trustees of a fund; or

(b) the board of directors of the corporate trustee of a fund;

must be taken not to have been made, or to be of no effect, if fewer than two-thirds of the total number of the trustees or directors, as the case requires, voted for it.