THE CORPORATIONS LAW

CHAPTER 11 - APPLICATION AND TRANSITIONAL PROVISIONS

PART 11.2 - COMMENCEMENT AND APPLICATION OF CERTAIN CHANGES TO THIS LAW

Division 11 - Changes resulting from the Managed Investments Act 1998

SECTION 1460   POWERS OF PROPOSED RESPONSIBLE ENTITY  

1460(1)  [Powers]  

This section sets out the powers of:

(a)  a body that decides under subsection 1456(1) to lodge a registration application in relation to the undertaking naming itself as the proposed responsible entity; or

(b)  a body chosen by the holders of the prescribed interests as the proposed responsible entity at a meeting convened under paragraph 1456(2)(b) or 1457(1)(a).

1460(2)  [Lodge registration application]  

The body has power to lodge a registration application in relation to the undertaking on behalf of the holders of the prescribed interests, and has power to do all things necessary for the purpose of the application.

1460(3)  [Modify deed]  

The body has power to modify the deed in relation to the prescribed interests:

(a)  if the purpose of the modification is to make the deed meet the requirements of section 601GA of the new Law for the constitution of a registered scheme; or

(b)  the modification removes from the deed covenants that were included to satisfy the requirements of Division 5 of Part 7.12 of the old Law.

This is so despite any provision in the deed to the contrary.

1460(4)  [Section 1069A]  

Section 1069A of the old Law does not apply to the body's power to modify the deed (except as provided in section 1461).

1460(5)  [Lodge notice]  

The body must lodge a notice with ASIC setting out the modifications.

1460(6)  [Power to modify deed]  

The body's power to modify the deed is subject to the following qualifications:

(a)  the modifications have effect if, and only if, the undertaking becomes a registered scheme; and

(b)  within 28 days of lodgment of the notice setting out the modifications, ASIC may require the management company to convene a meeting of the holders of the prescribed interests to ratify all or any of the modifications; and

(c)  if ASIC requires a modification to be ratified, it does not have effect under paragraph (a) unless it has been ratified and written notice of the ratification has been lodged with ASIC.