Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 6 - OFFICERS  

PART 6-6 - MEMBER APPROVAL NEEDED FOR RELATED PARTY BENEFIT  

Division 284 - Need for member approval  

SECTION 284-1   NEED FOR MEMBER APPROVAL FOR FINANCIAL BENEFIT  

284-1(1)    
For an Aboriginal and Torres Strait Islander corporation, or an entity that the corporation controls, to give a financial benefit to a related party of the corporation:

(a)    the corporation or entity must:

(i) obtain the approval of the corporation ' s members in the way set out in Division 290 ; and

(ii) give the benefit within 15 months after the approval; or

(b)    the giving of the benefit must fall within an exception set out in Division 287 .

Note:

Section 293-1 defines related party , section 700-1 defines entity , section 689-25 defines control and section 293-5 affects the meaning of giving a financial benefit .

284-1(2)    
If:

(a)    the giving of the benefit is required by a contract; and

(b)    the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and

(c)    the contract was made:

(i) within 15 months after that approval; or

(ii) before that approval, if the contract was conditional on the approval being obtained;

member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.