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 1 - Need for member approval  

SECTION 209   CONSEQUENCES OF BREACH  

209(1)    
If the public company or entity contravenes section 208 :

(a)    the contravention does not affect the validity of any contract or transaction connected with the giving of the benefit; and

(b)    the public company or entity is not guilty of an offence.

Note: A Court may order an injunction to stop the company or entity giving the benefit to the related party (see section 1324 ).

209(2)    
A person contravenes this subsection if they are involved in a contravention of section 208 by a public company or entity.

Note 1: This subsection is a civil penalty provision.

Note 2: Section 79 defines involved .

Note 3: This section has an extended operation in relation to a retail CCIV: see section 1227A .

209(3)    
A person commits an offence if they are involved in a contravention of section 208 by a public company or entity and the involvement is dishonest.