CORPORATIONS ACT 2001
A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.
Note: Failure to comply with this subsection is an offence (see subsection 1311(1) ).601SCD(2)
Subsection (1) does not apply if the financial benefit is given on terms that:
(a) would be reasonable in the circumstances if the trustee company and the related party were dealing at arm ' s length; or
(b) are less favourable to the related party than the terms referred to in paragraph (a). 601SCD(3)
In this section:
has a meaning that is affected by section 229 .
has the meaning given by section 228 , as if references in that section to a public company were references to a licensed trustee company.