THE CORPORATIONS LAW

CHAPTER 2D - OFFICERS AND EMPLOYEES

PART 2D.2 - RESTRICTIONS ON INDEMNITIES, INSURANCE AND TERMINATION PAYMENTS

Division 2 - Termination payments

SECTION 200B   RETIREMENT BENEFITS GENERALLY NEED MEMBERSHIP APPROVAL  

200B(1)  Benefits in connection with retirement from board or managerial office.  

The following must not give a person a benefit in connection with that person's, or someone else's, retirement from a board or managerial office in a company, or a related body corporate, without member approval under section 200E:

(a)  the company

(b)  an associate of the company (other than a body corporate that is related to the company and is itself a company)

(c)  a prescribed superannuation fund in relation to the company.

Note 1:

Sections 200F, 200G and 200H provide for exceptions to this rule.

Note 2: Section 9 defines board or managerial office .

200B(2)  Prescribed superannuation funds.  

For the purposes of this section:

(a)  a superannuation fund is taken to be a prescribed superannuation fund in relation to a company if the company, or an associate of the company, gives a benefit to the superannuation fund in prescribed circumstances; and

(b)  if a prescribed superannuation fund in relation to a company gives a benefit to another superannuation fund in prescribed circumstances, the other superannuation fund is taken to be a prescribed superannuation fund in relation to the company.

200B(3)  Prescribed circumstances.  

For the purposes of this section, if:

(a)  a company, or an associate of a company, gives a benefit to a superannuation fund solely for the purpose of enabling or assisting the superannuation fund to give to a person a benefit in connection with a person's retirement from an office in the company or a related body corporate; or

(b)  a superannuation fund gives a benefit to another superannuation fund solely for the purpose of enabling or assisting the other superannuation fund to give to a person a benefit in connection with a person's retirement from an office in a company or a related body corporate;

the benefit first referred to in paragraph (a) or (b) is taken to be given in prescribed circumstances.

200B(4)  [Definition]  

In this section:

superannuation fund means a provident, benefit, superannuation or retirement fund.