Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.5 - OPERATING A CCIV  

Division 4 - Purposes for which sub-fund assets may be applied  

SECTION 1234A   REQUIREMENT FOR SEGREGATED APPLICATION OF ASSETS OF SUB-FUNDS  

1234A(1)    
The assets of a sub-fund of a CCIV must not be applied, or dealt with, whether directly or indirectly:

(a)    subject to paragraph (b) , for any purpose other than a purpose covered by section 1234B ; or

(b)    for a purpose prescribed by regulations made for the purposes of this paragraph.

Note: For the consequences of a contravention of this requirement, see section 1234F .

1234A(2)    
Subsection (1) does not apply to:

(a)    money or property to which section 1234 applies; or

(b)    assets of a sub-fund of the CCIV, to the extent the assets consist of property to which section 1233K (about property that has to be converted into money etc.) applies.

Note: For paragraph (b) , see instead section 1234C .

1234A(3)    
The assets of 2 or more sub-funds of a CCIV must not be applied jointly to acquire a single item of property of the CCIV.

Note: A single item of property that forms part of the assets of 2 or more sub-funds must be converted into money or other fungible property: see section 1233K .

Liquidators

1234A(4)    
However, a liquidator or provisional liquidator of a sub-fund of a CCIV may:

(a)    make a disposition of assets of the sub-fund that is an exempt disposition for the purposes of subsection 468(2) , as that subsection applies to the sub-fund under Division 5 of Part 8B.6 ; or

(b)    disclaim property of a sub-fund under Division 7A of Part 5.6 , as that Division applies to the sub-fund under Division 5 of Part 8B.6 .