THE CORPORATIONS LAW

CHAPTER 2E - RELATED PARTY TRANSACTIONS

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

Division 1 - Need for member approval

SECTION 209   CONSEQUENCES OF BREACH  

209(1)  [Effect of contravention]  

If the public company or entity contravenes section 208:

(a)  the contravention does not affect the validity of any contract or transaction connected with the giving of the benefit; and

(b)  the public company or entity is not guilty of an offence.

Note:

A Court may order an injunction to stop the company or entity giving the benefit to the related party (see section 1324).

209(2)  [Involvement]  

A person contravenes this subsection if they are involved in a contravention of section 208 by a public company or entity.

Note 1:

This subsection is a civil penalty provision.

Note 2: Section 79 defines involved .

209(3)  [Dishonesty]  

A person commits an offence if they are involved in a contravention of section 208 by a public company or entity and the involvement is dishonest.