THE CORPORATIONS LAW

SCHEDULES

SCHEDULE 4

TRANSFER OF FINANCIAL INSTITUTIONS AND FRIENDLY SOCIETIES

Note:

See section 1465A.

PART 4 - THE TRANSITION PERIOD

ASIC may direct directors of a company to modify its constitution  

25(1) 

If a company registered under clause 3 has not modified its constitution so that it complies with subclause 24(1) by the end of the transition period, ASIC may direct, in writing, the directors of the company to:

(a)  take the necessary or specified steps to:

(i) ensure that the company modifies its constitution so that it does comply; or

(ii) ensure that the company makes the modifications to its constitution that ASIC specifies; and

(b)  take those steps within a specified time (which must be more than 28 days).

A direction may require the directors to take steps that are inconsistent with the company's constitution.

25(2) 

ASIC may issue a direction under subclause (1) before the end of the transition period if requested by a majority of directors of the company.

25(3) 

No civil or criminal liability arises from action taken by a director in good faith and in accordance with a direction issued under subclause (1).

25(4) 

A person contravenes this subclause if, without reasonable excuse, they contravene a direction under subclause (1).

25(5) 

A person who intentionally or recklessly contravenes a direction under subclause (1) is guilty of an offence.

Penalty: 100 penalty units or imprisonment for 2 years, or both.