Corporations Act 2001

CHAPTER 2D - OFFICERS AND EMPLOYEES  

PART 2D.2 - RESTRICTIONS ON INDEMNITIES, INSURANCE AND TERMINATION PAYMENTS  

Division 2 - Termination payments  

SECTION 200B   RETIREMENT BENEFITS GENERALLY NEED MEMBERSHIP APPROVAL  
Benefits in connection with retirement if person has held a managerial or executive office

200B(1)    

An entity mentioned in subsection (1AA) must not give a person a benefit in connection with a person ' s (the retiree ' s ) retirement from an office, or position of employment, in a company or a related body corporate if:

(a)    the office or position is a managerial or executive office; or

(b)    the retiree has, at any time during the last 3 years before his or her retirement, held a managerial or executive office in the company or a related body corporate;

unless there is member approval under section 200E for the giving of the benefit.

Note 1: This subsection extends to benefits given by way of compensation for, or otherwise in connection with, a person ' s loss of an office or position (see subsections 200A(1) and (3) ).

Note 2: Sections 200F , 200G and 200H provide for exceptions to this subsection.

Note 3: The recipient of the benefit need not be the retiree.

Note 4: This section has a modified operation in relation to CCIVs: see section 1224ZD .

200B(1AA)    

The entities are as follows:

(a)    the company;

(b)    an associate of the company (other than a body corporate that is related to the company and is itself a company);

(c)    a prescribed superannuation fund in relation to the company.

200B(1A)    

For an offence based on subsection (1) , strict liability applies to the circumstance, that the benefit is in connection with the retiree ' s, or someone else ' s, retirement.

Note: For strict liability , see section 6.1 of the Criminal Code .

Prescribed superannuation funds

200B(2)    
For the purposes of this section:

(a)    a superannuation fund is taken to be a prescribed superannuation fund in relation to a company if the company, or an associate of the company, gives a benefit to the superannuation fund in prescribed circumstances; and

(b)    if a prescribed superannuation fund in relation to a company gives a benefit to another superannuation fund in prescribed circumstances, the other superannuation fund is taken to be a prescribed superannuation fund in relation to the company.

Prescribed circumstances

200B(3)    

For the purposes of this section, if:

(a)    a company, or an associate of a company, gives a benefit to a superannuation fund solely for the purpose of enabling or assisting the superannuation fund to give to a person a benefit in connection with the retiree ' s retirement from an office or position in the company or a related body corporate; or

(b)    a superannuation fund gives a benefit to another superannuation fund solely for the purpose of enabling or assisting the other superannuation fund to give to a person a benefit in connection with the retiree ' s retirement from an office or position in a company or a related body corporate;

the benefit first referred to in paragraph (a) or (b) is taken to be given in prescribed circumstances.

200B(4)    
In this section:

superannuation fund
means a provident, benefit, superannuation or retirement fund.