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 284-5   CONSEQUENCES OF BREACH  

284-5(1)    
If the corporation or entity contravenes section 284-1 :

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

(b)    the corporation or entity does not commit an offence.

Note:

A Court may order an injunction to stop the corporation or entity giving the benefit to the related party (see section 576-25 ).

284-5(2)    
A person contravenes this subsection if they are involved in a contravention of section 284-1 by a corporation or entity.

Note 1:

This subsection is a civil penalty provision (see section 386-1 ).

Note 2:

Section 694-55 defines involved in .

284-5(3)    
A person commits an offence if they are involved in a contravention of section 284-1 by a corporation or entity and the involvement is dishonest.

Penalty: 2,000 penalty units or imprisonment for 5 years, or both.