Corporations Act 2001
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Hide history noteCCH note - modifying legislative instruments: The application of Pt 8B.3 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (CCIV Auditors) Instrument 2024/668.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 8B.3, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
CCH Note: Division 2 is modified by the ASIC Corporations (Chapter 5C - Miscellaneous Provisions) Instrument 2017/125.
CCH Note: Subdivision B is modified by the ASIC Corporations (Chapter 5C - Miscellaneous Provisions) Instrument 2017/125.
CCH Note: Section 1224G is modified by the ASIC Corporations (Chapter 5C - Miscellaneous Provisions) Instrument 2017/125.
At least half of the directors of the corporate director of a retail CCIV must be external directors.
1224G(2)
A director of the corporate director is an external director if the director: (a) is not, and has not been in the previous 2 years, an employee of the corporate director or a related body corporate; and (b) is not, and has not been in the previous 2 years, a senior manager of the corporate director or a related body corporate; and (c) is not, and has not been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the corporate director or a related body corporate; and (d) is not a member of a partnership that is, or has been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the corporate director or a related body corporate; and (e) does not have a material interest in the corporate director or a related body corporate; and (f) is not a relative of a person who has a material interest in the corporate director or a related body corporate.
1224G(3)
The corporate director of a retail CCIV must not fail to comply with subsection (1) for a period exceeding 14 days (or a longer period allowed in writing by ASIC).
Fault-based offence
1224G(4)
A person commits an offence if the person intentionally or recklessly fails to comply with subsection (3) .
Strict liability offence
1224G(5)
A person commits an offence of strict liability if the person fails to comply with subsection (3) .
1224G(6)
In agreeing to a longer period under subsection (3) , ASIC may impose conditions to be complied with and the corporate director must comply with them.
1224G(7)
An offence based on subsection (6) is an offence of strict liability.
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