Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.5 - OPERATING A CCIV  

Division 3 - Requirement for assets and liabilities to be allocated between sub-funds  

Subdivision C - What are the liabilities of a particular sub-fund  

SECTION 1233L   MEANING OF LIABILITIES - SUB-FUND OF A CCIV  

1233L(1)    
The liabilities of a sub-fund of a CCIV at a particular time are the following:

(a)    liabilities of the CCIV that relate solely to the business of the sub-fund;

(b)    liabilities of the CCIV not covered by paragraph (a) , to the extent that it is fair and reasonable in the circumstances to allocate the liability to the sub-fund at the time having regard to the following matters:

(i) the extent to which the liability, when it arose, related to the business of the sub-fund;

(ii) the extent to which assets of the sub-fund, and assets of other sub-funds, of the CCIV have been applied to meet the liability;

(iii) the regulations (if any) made for the purposes of subsection (4) .

Note: Section 1233A is about references to the liabilities of a CCIV.

Effect of an allocation determination

1233L(2)    
Despite subsection (1) , if:

(a)    a particular proportion of a liability of a CCIV is allocated to a sub-fund of the CCIV at a time under a determination made under section 1233M (including a determination as varied under section 1233N ); and

(b)    the determination is operative at the time (see subsection 1233M(4) );

that proportion of the liability is taken to form part of the liabilities of the sub-fund at that time.

Effect of a Court order about an arrangement or reconstruction

1233L(3)    
Despite subsections (1) and (2) , the liabilities of a sub-fund of a CCIV:

(a)    include liabilities that, in accordance with a Court order made under section 1235F (about arrangements and reconstructions of sub-funds), are to be liabilities of the sub-fund; and

(b)    do not include liabilities that, in accordance with an order made under that section, are no longer to be liabilities of the sub-fund.

Regulations

1233L(4)    
The regulations may provide for and in relation to matters to be considered in determining the extent to which a liability of a CCIV forms part of the liabilities of a sub-fund of the CCIV.