Corporations Act 2001
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Hide history noteCCH note - modifying legislative instruments: The application of Pt 8B.4 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.4, 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.
A CCIV must not pay a dividend on a share if, immediately before the dividend is paid: (a) the sub-fund to which the share is referable is insolvent; or (b) there are reasonable grounds for suspecting that the sub-fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid.
Note 1: For when a sub-fund of a CCIV is solvent , or insolvent , see section 1231A .
Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub-funds: see section 588G (as modified by Division 6 of Part 8B.6 ).
1230M(2)
Section 254T does not apply to a CCIV.
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