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 C - What are the liabilities of a particular sub-fund  

SECTION 1233N   VARIATIONS OF PROPORTIONAL ALLOCATION OF LIABILITIES  

1233N(1)    
The corporate director may vary a determination made under section 1233M if it is necessary to do so to ensure that the determination remains operative for the purposes of subsection 1233M(4) .

1233N(2)    
If, as a result of a change in circumstances, a determination has or will become inoperative, the corporate director must vary the determination as soon as is practicable.

Note: The variation may take effect retrospectively to make operative a determination that has become inoperative: see paragraph (3)(b) .

1233N(3)    
The variation:

(a)    must be fair and reasonable in the circumstances and having regard to:

(i) the matters referred to in paragraph 1233L(1)(b) ; and

(ii) the time at which it starts to apply; and

(b)    must specify the time at which it starts to apply, which may be earlier or later than the time at which the variation is made; and

(c)    must result in the liability being wholly allocated; and

(d)    must be made in writing.

Effect of variation

1233N(4)    
The variation takes effect from the time at which it starts to apply.

Fault-based offences

1233N(5)    
A person commits an offence if:

(a)    the person is subject to a requirement under subsection (2) ; and

(b)    the person fails to comply with the requirement.