THE CORPORATIONS LAW

CHAPTER 2G - MEETINGS

PART 2G.4 - MEETINGS OF MEMBERS OF REGISTERED MANAGED INVESTMENT SCHEMES

Division 3 - Members' rights to put resolutions etc at meetings of members

SECTION 252N   MEMBERS' STATEMENTS TO BE DISTRIBUTED  

252N(1)  [Statement requested by members]  

Members may request a responsible entity to give to all its members a statement provided by the members making the request about:

(a)  a resolution that is proposed to be moved at a meeting of the scheme's members; or

(b)  any other matter that may be properly considered at a meeting of the scheme's members.

252N(2)  [Who may make request]  

The request must be made by:

(a)  members with at least 5% of the votes that may be cast on the resolution; or

(b)  at least 100 members who are entitled to vote at the meeting.

252N(2A)  [Prescription of members by regulation]  

The regulations may prescribe a different number of members for the purposes of the application of paragraph (2)(b) to:

(a)  a particular scheme; or

(b)  a particular class of scheme.

Without limiting this, the regulations may specify the number as a percentage of the total number of members of the scheme.

252N(3)  [Form of request]  

The request must be:

(a)  in writing; and

(b)  signed by the members making the request; and

(c)  given to the responsible entity.

252N(4)  [Separate copies]  

Separate copies of a document setting out the request may be used for signing by members if the wording of the request is identical in each copy.

252N(5)  [Determining votes]  

The percentage of the votes that members have is to be worked out as at the midnight before the request is given to the responsible entity.

252N(6)  [Distribution of statement]  

After receiving the request, the responsible entity must distribute to all the members of the scheme a copy of the statement at the same time, or as soon as practicable afterwards, and in the same way, as it gives notice of a meeting.

252N(7)  [Cost]  

The responsible entity is responsible for the cost of making the distribution if the responsible entity receives the statement in time to send it out to members with the notice of meeting.

252N(8)  [Expenses]  

The members making the request are jointly and individually liable for the expenses reasonably incurred by the responsible entity in making the distribution if the responsible entity does not receive the statement in time to send it out with the notice of meeting. A resolution may be passed at a meeting of the scheme's members that the responsible entity is to meet the expenses out of the scheme's assets.

252N(9)  [Responsible entity need not comply in certain circumstances]  

The responsible entity need not comply with the request:

(a)  if the statement is more than 1,000 words long or defamatory; or

(b)  if the members making the request are responsible for the expenses of the distribution - unless the members give the company a sum reasonably sufficient to meet the expenses that it will reasonably incur in making the distribution.