Corporations Act 2001

CHAPTER 2E - RELATED PARTY TRANSACTIONS  

Note: This Chapter applies to a CCIV with modifications: see Division 5 of Part 8B.3 .

PART 2E.1 - MEMBER APPROVAL NEEDED FOR RELATED PARTY BENEFIT  

Division 3 - Procedure for obtaining member approval  

SECTION 218   COMPANY MUST LODGE MATERIAL THAT WILL BE PUT TO MEMBERS WITH ASIC  

218(1)   [ Documents to be lodged; time for]  

At least 14 days before the notice convening the relevant meeting is given, the public company must lodge:

(a) a proposed notice of meeting setting out the text of the proposed resolution; and

(b) a proposed explanatory statement satisfying section 219; and

(c) any other document that is proposed to accompany the notice convening the meeting and that relates to the proposed resolution; and

(d) any other document that any of the following proposes to give to members of the public company before or at the meeting:

(i) the company;

(ii) a related party of the company to whom the proposed resolution would permit a financial benefit to be given;

(iii) an associate of the company or of such a related party;

and can reasonably be expected to be material to a member in deciding how to vote on the proposed resolution.

218(2)   [ Approval of period less than 14 days]  

If, when the notice convening the meeting is given, ASIC:

(a) has approved in writing a period of less than 14 days for the purposes of subsection (1); and

(b) has not revoked the approval by written notice to the public company;

subsection (1) applies as if the reference to 14 days were a reference to the approved period.

218(3)   [ Power of ASIC to approve]  

ASIC may give and revoke approvals for the purposes of subsection (2).