THE CORPORATIONS LAW

CHAPTER 2E - RELATED PARTY TRANSACTIONS

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

Division 3 - Procedure for obtaining member approval

SECTION 218   COMPANY MUST LODGE MATERIAL THAT WILL BE PUT TO MEMBERS WITH ASIC  

218(1)  (Documents to be lodged)  

At least 14 days before the notice convening the relevant meeting is given, the public company must lodge:

(a)  a proposed notice of meeting setting out the text of the proposed resolution; and

(b)  a proposed explanatory statement satisfying section 219; and

(c)  any other document that is proposed to accompany the notice convening the meeting and that relates to the proposed resolution; and

(d)  any other document that any of the following proposes to give to members of the public company before or at the meeting:

(i) the company;

(ii) a related party of the company to whom the proposed resolution would permit a financial benefit to be given;

(iii) an associate of the company or of such a related party; and can reasonably be expected to be material to a member in deciding how to vote on the proposed resolution.

218(2)  [Effect of ASIC approval]  

If, when the notice convening the meeting is given, ASIC:

(a)  has approved in writing a period of less than 14 days for the purposes of subsection (1); and

(b)  has not revoked the approval by written notice to the public company;

subsection (1) applies as if the reference to 14 days were a reference to the approved period.

218(3)  [Power of ASIC to approve]  

ASIC may give and revoke approvals for the purposes of subsection (2).