Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.4 - CORPORATE FINANCE AND FINANCIAL REPORTING FOR CCIVs  

Division 1 - Shares  

Subdivision A - Issuing and converting shares in a CCIV  

SECTION 1230   SHARES CAN ONLY BE ISSUED IN RESPECT OF SUB-FUNDS  

1230(1)    
A CCIV can issue a share only if the rights attaching to the share, so far as the rights are in respect of the assets of the CCIV, are restricted to rights in respect of the assets of one (and only one) sub-fund of the CCIV. This is the sub-fund to which the share is referable .

1230(2)    
The sub-fund to which the share is referable does not change if, after the share is issued, the CCIV acquires the share in respect of another of its sub-funds.

Note: For cross-investment between sub-funds, see Subdivision F .

1230(3)    
Subsection (1) and regulations made for the purposes of subsection (5) limit paragraph 124(1)(a) and section 254A in relation to a CCIV.

Note: Subsection (1) effectively also limits some other paragraphs of subsection 124(1) , such as paragraph (c) (about granting options over unissued shares in a company).

1230(4)    
A Court must not make an order under section 254E that is inconsistent with subsection (1) of this section, or regulations made for the purposes of subsection (5) of this section, unless the Court considers that the interests of justice require otherwise.

1230(5)    
Regulations made for the purposes of this subsection may make provision for and in relation to further requirements for the issue of shares by a CCIV.

1230(6)    
Without limiting subsection (5) , regulations made for the purposes of that subsection may prescribe requirements for the issue of shares, or classes of shares, in relation to one or more of the following:

(a)    all CCIVs;

(b)    a specified class of CCIVs;

(c)    all sub-funds of all CCIVs;

(d)    a specified class of sub-funds of CCIVs;

(e)    all sub-funds of a specified class of CCIVs.