Corporations (Aboriginal and Torres Strait Islander) Act 2006

CHAPTER 6 - OFFICERS  

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

Division 293 - Related parties and financial benefits  

SECTION 293-5   GIVING A FINANCIAL BENEFIT  

293-5(1)    
In determining what constitutes giving a financial benefit :

(a)    give a broad interpretation to financial benefits being given, even if criminal or civil penalties may be involved; and

(b)    the economic and commercial substance of conduct is to prevail over its legal form; and

(c)    disregard any consideration that is or may be given for the benefit, even if the consideration is adequate.

293-5(2)    
Giving a financial benefit includes the following:

(a)    giving a financial benefit indirectly, for example, through 1 or more interposed entities;

(b)    giving a financial benefit by making an informal agreement, oral agreement or an agreement that has no binding force;

(c)    giving a financial benefit that does not involve paying money (for example by conferring a financial advantage).

293-5(3)    
The following are examples of giving a financial benefit to a related party:

(a)    giving or providing the related party finance or property;

(b)    buying an asset from or selling an asset to the related party;

(c)    leasing an asset from or to the related party;

(d)    supplying services to or receiving services from the related party;

(e)    issuing securities or granting an option to the related party;

(f)    taking up or releasing an obligation of the related party.