Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

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

Division 1 - Shares  

Subdivision D - Dividends  

SECTION 1230M   CIRCUMSTANCES IN WHICH A DIVIDEND MAY BE PAID  

1230M(1)    
A CCIV must not pay a dividend on a share if, immediately before the dividend is paid:

(a)    the sub-fund to which the share is referable is insolvent; or

(b)    there are reasonable grounds for suspecting that the sub-fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid.

Note 1: For when a sub-fund of a CCIV is solvent , or insolvent , see section 1231A .

Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub-funds: see section 588G (as modified by Division 6 of Part 8B.6 ).

1230M(2)    
Section 254T does not apply to a CCIV.