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Corporations Act 2001

CHAPTER 5C - MANAGED INVESTMENT SCHEMES  

PART 5C.7 - RELATED PARTY TRANSACTIONS  

SECTION 601LA  

601LA   CHAPTER 2E APPLIES WITH MODIFICATIONS  


Chapter 2E applies to a registered scheme with the modifications set out in sections 601LB to 601LE and as if:

(a)    references to a public company were instead references to the responsible entity of the scheme; and

(b)    references to a benefit being given to or received by a related party of a public company were instead references to a benefit being given to or received by the responsible entity or a related party; and

(c)    references to a resolution of a public company were instead references to a resolution of the members of the scheme; and

(d)    references to a general meeting were instead references to a members ' meeting of the scheme; and

(e)    references to members of a public company were instead references to members of the scheme; and

(f)    references to the company ' s best interests were instead references to the best interests of the scheme ' s members.

SECTION 601LB  

601LB   REPLACEMENT SECTION 207  


Chapter 2E applies as if section 207 were replaced by the following section:

207 Purpose  
The rules in this Chapter, as they apply to a registered scheme, are designed to protect the interests of the scheme ' s members as a whole, by requiring member approval for giving financial benefits to the responsible entity or its related parties that come out of scheme property or that could endanger those interests.

SECTION 601LC  

601LC   REPLACEMENT SECTION 208  


Chapter 2E applies as if section 208 were replaced by the following section:

208 Need for member approval for financial benefit  


(1)
If all the following conditions are satisfied in relation to a financial benefit:


(a) the benefit is given by:


(i) the responsible entity of a registered scheme; or

(ii) an entity that the responsible entity controls; or

(iii) an agent of, or person engaged by, the responsible entity


(b) the benefit either:


(i) is given out of the scheme property; or

(ii) could endanger the scheme property


(c) the benefit is given to:


(i) the person or a related party; or

(ii) another person referred to in paragraph (a) or a related party of that person;

then, for the person referred to in paragraph (a) to give the benefit, either:


(d) the person referred to in paragraph (a) must:


(i) obtain the approval of the scheme's members in the way set out in sections 217 to 227; and

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


(e) the giving of the benefit must fall within an exception set out in sections 210 to 216.


(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)(d)(i) as a financial benefit given to the entity or 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.



(3)
Subsection (1) does not prevent the responsible entity from paying itself fees, and exercising rights to an indemnity, as provided for in the scheme's constitution under subsection 601GA(2).

 View history note

SECTION 601LD  

601LD   OMISSION OF SECTIONS 213, 214 AND 224  


Chapter 2E applies as if sections 213 , 214 and 224 were omitted.

Note: Instead of section 224 , the rule in section 253E will apply.

SECTION 601LE  

601LE   MODIFICATION OF SECTION 225  


Chapter 2E applies as if subsection 225(1) were amended by omitting " subsection 224(1) " and substituting " section 253E " .