CORPORATIONS ACT 2001

CHAPTER 2D - OFFICERS AND EMPLOYEES  

PART 2D.2 - RESTRICTIONS ON INDEMNITIES, INSURANCE AND TERMINATION PAYMENTS  

Division 2 - Termination payments  

SECTION 200B   RETIREMENT BENEFITS GENERALLY NEED MEMBERSHIP APPROVAL  

200B(1)   Benefits in connection with retirement if person has held a managerial or executive office.  

An entity mentioned in subsection (1AA) must not give a person a benefit in connection with a person ' s (the retiree ' s ) retirement from an office, or position of employment, in a company or a related body corporate if:


(a) the office or position is a managerial or executive office; or


(b) the retiree has, at any time during the last 3 years before his or her retirement, held a managerial or executive office in the company or a related body corporate;

unless there is member approval under section 200E for the giving of the benefit.

Note 1: This subsection extends to benefits given by way of compensation for, or otherwise in connection with, a person ' s loss of an office or position (see subsections 200A(1) and (3) ).

Note 2: Sections 200F , 200G and 200H provide for exceptions to this subsection.

Note 3: The recipient of the benefit need not be the retiree.

200B(1AA)   [ Entities]  

The entities are as follows:


(a) the company;


(b) an associate of the company (other than a body corporate that is related to the company and is itself a company);


(c) a prescribed superannuation fund in relation to the company.

200B(1A)   [ Strict liability offence]  

For an offence based on subsection (1), strict liability applies to the circumstance, that the benefit is in connection with the retiree ' s, or someone else's, retirement.

Note: For strict liability , see section 6.1 of the Criminal Code .

200B(2)   Prescribed superannuation funds.  

For the purposes of this section:


(a) a superannuation fund is taken to be a prescribed superannuation fund in relation to a company if the company, or an associate of the company, gives a benefit to the superannuation fund in prescribed circumstances; and


(b) if a prescribed superannuation fund in relation to a company gives a benefit to another superannuation fund in prescribed circumstances, the other superannuation fund is taken to be a prescribed superannuation fund in relation to the company.

200B(3)   Prescribed circumstances.  

For the purposes of this section, if:


(a) a company, or an associate of a company, gives a benefit to a superannuation fund solely for the purpose of enabling or assisting the superannuation fund to give to a person a benefit in connection with the retiree ' s retirement from an office or position in the company or a related body corporate; or


(b) a superannuation fund gives a benefit to another superannuation fund solely for the purpose of enabling or assisting the other superannuation fund to give to a person a benefit in connection with the retiree ' s retirement from an office or position in a company or a related body corporate;

the benefit first referred to in paragraph (a) or (b) is taken to be given in prescribed circumstances.

200B(4)   [ " superannuation fund " ]  

In this section:

superannuation fund
means a provident, benefit, superannuation or retirement fund.


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