THE CORPORATIONS LAW

CHAPTER 2E - RELATED PARTY TRANSACTIONS

PART 2E.2 - RELATED PARTIES AND FINANCIAL BENEFITS

SECTION 228   RELATED PARTIES  

228(1)  Controlling entities.  

An entity that controls a public company is a related party of the public company.

228(2)  Directors and their spouses.  

The following persons are related parties of a public company:

(a)  directors of the public company

(b)  directors (if any) of an entity that controls the public company

(c)  if the public company is controlled by an entity that is not a body corporate - each of the persons making up the controlling entity

(d)  spouses and de facto spouses of the persons referred to in paragraphs (a), (b) and (c).

228(3)  Relatives of directors and spouses.  

The following relatives of persons referred to in subsection (2) are related parties of the public company:

(a)  parents

(b)  children.

228(4)  Entities controlled by other related parties.  

An entity controlled by a related party referred to in subsection (1), (2) or (3) is a related party of the public company unless the entity is also controlled by the public company.

228(5)  Related party in previous 6 months.  

An entity is a related party of a public company at a particular time if the entity was a related party of the public company of a kind referred to in subsection (1), (2), (3) or (4) at any time within the previous 6 months.

228(6)  Entity has reasonable grounds to believe it will become related party in future.  

An entity is a related party of a public company at a particular time if the entity believes or has reasonable grounds to believe that it is likely to become a related party of the public company of a kind referred to in subsection (1), (2), (3) or (4) at any time in the future.

228(7)  Acting in concert with related party.  

An entity is a related party of a public company if the entity acts in concert with a related party of the public company on the understanding that the related party will receive a financial benefit if the public company gives the entity a financial benefit.