Corporations Act 2001

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)   [ Person involved in contravention]  

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)   [ Offence]  

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.


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