Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.5 - OPERATING A CCIV  

Division 3 - Requirement for assets and liabilities to be allocated between sub-funds  

Subdivision B - What are the assets of a particular sub-fund  

SECTION 1233H   MEANING OF ASSETS - SUB-FUND OF A CCIV  

1233H(1)    
Money or property forms part of the assets of a sub-fund to the extent the money or property was obtained by the application of assets of the sub-fund.

Note: Division 4 of this Part requires assets of a sub-fund to be applied only for purposes relating to the sub-fund.

1233H(2)    
Subject to subsection (1) , the assets of a sub-fund of a CCIV at a particular time are the following:

(a)    amounts paid up in consideration for the issue of shares that are referable to the sub-fund;

(b)    money deposited with or lent to the CCIV under debentures that are referable to the sub-fund;

(c)    shares acquired by the CCIV in respect of the sub-fund that are shares in the CCIV that are referable to another of the CCIV ' s sub-funds;

(d)    money or property of the CCIV not covered by paragraph (a) , (b) or (c) , to the extent the money or property, at the time it is acquired, relates solely to the business of the sub-fund;

(e)    if there is money or property of the CCIV not covered by paragraph (a) , (b) , (c) or (d) at the time it is acquired - the proportion (which may be nil) of the money or property that it is fair and reasonable, in the circumstances, to allocate to the sub-fund at that time.

Effect of an allocation determination

1233H(3)    
Despite subsections (1) and (2) , if:

(a)    the corporate director of a CCIV determines under section 1233J that a particular proportion of certain money or property of a CCIV is allocated to a sub-fund of the CCIV; and

(b)    the determination is operative (see subsection 1233J(4) );

that proportion of the money or property is taken to form part of the assets of the sub-fund, and to have been part of the assets of the sub-fund from the time the money or property was acquired.

Note: If there is a single item of property that forms part of the assets of 2 or more sub-funds, it may not be held by the CCIV as an investment but must instead be converted into money or other fungible assets (see section 1233K ).

Effect of a Court order about an arrangement or reconstruction

1233H(4)    
Despite subsections (1) , (2) and (3) , the assets of a sub-fund of a CCIV:

(a)    include assets that, in accordance with a Court order made under section 1235F (about arrangements and reconstructions of sub-funds), are to be assets of the sub-fund; and

(b)    do not include assets that, in accordance with an order made under that section, are no longer to be assets of the sub-fund.

Note: Subsection (1) of this section applies to money or property obtained by the application of these assets of a sub-fund.

Regulations

1233H(5)    
The regulations may provide for and in relation to matters to be considered in determining the extent to which money or property of a CCIV forms part of the assets of a sub-fund of the CCIV.