CCH Note:
Part 13 of the
Corporations Act 1989, inserted
by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as
follows:
PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW
82
The Corporations Law is as follows:...
CHAPTER 2F - MEMBERS' RIGHTS AND REMEDIES
History
Chapter 2F inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
PART 2F.1A - PROCEEDINGS ON BEHALF OF A COMPANY BY MEMBERS AND OTHERS
History
Part 2F.1A inserted by No 156 of 1999, Sch 1 (effective 13 March 2000).
SECTION 239
EFFECT OF RATIFICATION BY MEMBERS
239(1)
[Consequences of ratification]
If the members of a company ratify or approve conduct, the ratification or approval:
(a)
does not prevent a person from bringing or intervening in proceedings with leave under section
237 or from applying for leave under that section; and
(b)
does not have the effect that proceedings brought or intervened in with leave under section
237 must be determined in favour of the defendant, or that an application for leave under that section must be refused.
239(2)
[Effect of ratification on Court]
If members of a company ratify or approve conduct, the Court may take the ratification or approval into account in deciding what order or judgment (including as to damages) to make in proceedings brought or intervened in with leave under section
237 or in relation to an application for leave under that section. In doing this, it must have regard to:
(a)
how well-informed about the conduct the members were when deciding whether to ratify or approve the conduct; and
(b)
whether the members who ratified or approved the conduct were acting for proper purposes.
History
S 239 substituted by No 156 of 1999, Sch 1 (effective 13 March 2000).