Corporations Act 2001

CHAPTER 5D - LICENSED TRUSTEE COMPANIES  

PART 5D.2 - POWERS ETC. OF LICENSED TRUSTEE COMPANIES  

Division 3 - Common funds  

SECTION 601SCD   ARM ' S LENGTH TRANSACTIONS  

601SCD(1)    
A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).

601SCD(2)    
Subsection (1) does not apply if the financial benefit is given on terms that:

(a)    would be reasonable in the circumstances if the trustee company and the related party were dealing at arm ' s length; or

(b)    are less favourable to the related party than the terms referred to in paragraph (a).

601SCD(3)    

In this section:

financial benefit
(Repealed by No 76 of 2023, s 3, Sch 2[107] (effective 20 October 2023).)

related party
has the meaning given by section 228 , as if references in that section to a public company were references to a licensed trustee company.