Corporations Act 2001

CHAPTER 2E - RELATED PARTY TRANSACTIONS  

Note: This Chapter applies to a CCIV with modifications: see Division 5 of Part 8B.3 .

PART 2E.1 - MEMBER APPROVAL NEEDED FOR RELATED PARTY BENEFIT  

Division 2 - Exceptions to the requirement for member approval  

SECTION 213   SMALL AMOUNTS GIVEN TO RELATED ENTITY  

213(1)   [ Monetary limit]  

Member approval is not needed to give a financial benefit to a related party in a financial year if the total of the following amounts or values is less than or equal to the amount prescribed by the regulations for the purposes of this section:

(a) the amount or value of the financial benefit;

(b) the total of all other amounts or values of financial benefits given to the related party, in the financial year, for which member approval was not needed because of this section.

213(2)   [ Calculation of amount]  

In working out the total of the amounts or values referred to in paragraphs (1)(a) and (b):

(a) add in all amounts or values of financial benefits given to the related party in the financial year by:

(i) the public company or entity; and

(ii) any entities controlled by the public company or entity; and

(b) disregard:

(i) amounts that have been repaid; and

(ii) amounts that fall under any other exception in this Part.

For the purposes of this subsection, the time at which the entity must be controlled by the public company is the time at which the financial benefit is given.