CHAPTER 8B
-
CORPORATE COLLECTIVE INVESTMENT VEHICLES
History
Ch 8B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
PART 8B.4
-
CORPORATE FINANCE AND FINANCIAL REPORTING FOR CCIVs
History
Pt 8B.4 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Division 1
-
Shares
History
Div 1 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision A
-
Issuing and converting shares in a CCIV
History
Subdiv A inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230
SHARES CAN ONLY BE ISSUED IN RESPECT OF SUB-FUNDS
1230(1)
A CCIV can issue a share only ifthe rights attaching to the share, so far as the rights are in respect of the assets of the CCIV, are restricted to rights in respect of the assets of one (and only one) sub-fund of the CCIV. This is the sub-fund to which the share is
referable
.
1230(2)
The sub-fund to which the share is referable does not change if, after the share is issued, the CCIV acquires the share in respect of another of its sub-funds.
Note: For cross-investment between sub-funds, see Subdivision
F
.
1230(3)
Subsection
(1)
and regulations made for the purposes of subsection
(5)
limit paragraph
124(1)(a)
and section
254A
in relation to a CCIV.
Note: Subsection
(1)
effectively also limits some other paragraphs of subsection
124(1)
, such as paragraph
(c)
(about granting options over unissued shares in a company).
1230(4)
A Court must not make an order under section
254E
that is inconsistent with subsection
(1)
of this section, or regulations made for the purposes of subsection
(5)
of this section, unless the Court considers that the interests of justice require otherwise.
1230(5)
Regulations made for the purposes of this subsection may make provision for and in relation to further requirements for the issue of shares by a CCIV.
1230(6)
Without limiting subsection
(5)
, regulations made for the purposes of that subsection may prescribe requirements for the issue of shares, or classes of shares, in relation to one or more of the following:
(a)
all CCIVs;
(b)
a specified class of CCIVs;
(c)
all sub-funds of all CCIVs;
(d)
a specified class of sub-funds of CCIVs;
(e)
all sub-funds of a specified class of CCIVs.
History
S 1230 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230A
MINIMUM OF ONE CLASS OF SHARES PER SUB-FUND
1230A(1)
The shares in a CCIV that are referable to the same sub-fund of the CCIV, if not divided into 2 or more classes, constitute a class.
Note: A CCIV can issue shares only if the rights attaching to the shares are referable to one (and only one) sub-fund of the CCIV: see section
1230
.
1230A(2)
A class of shares is
referable
to a sub-fund of a CCIV if the shares in the class are referable to the sub-fund.
Part 2F.2 does not permit variation contrary to this section
1230A(3)
Nothing in Part
2F.2
permits rights attached to shares in a class of shares to be varied or cancelled in a mannerthat results in a contravention of this section.
History
S 1230A inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230B
POWER TO ISSUE REDEEMABLE SHARES
1230B(1)
Subject to section
1230
, a CCIV
'
s power under section
124
to issue shares includes the power to issue redeemable shares.
1230B(2)
All, some, or none of the shares in a CCIV may be redeemable shares.
Note: Subsections
(1)
and
(2)
reflect the fact that CCIVs may be open-ended investment vehicles.
1230B(3)
This section operates concurrently with section
254A
.
1230B(4)
A
redeemable share
, in a CCIV, is a share (other than a preference share) in a CCIV that is liable to be redeemed at the option of one or more of the following:
(a)
the CCIV;
(b)
the member.
Option to redeem is not a preference
1230B(5)
In determining whether a share in a CCIV is a preference share, any rights attaching to shares in the CCIV with respect to redemption are to be disregarded.
Note: As a result, a CCIV may have ordinary shares that are redeemable as well as ordinary shares that are not redeemable. Preferences relating to redemption (including preferences relating to who has the option to redeem) are ignored in determining whether a share is a preference share.
History
S 1230B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230C
CONVERSION OF SHARES
1230C(1)
A CCIV may convert a share of any kind into a share of a kind mentioned in an item in column 1 of the following table if the requirements (if any) specified in column 2 of the item are met.
Conversion of shares
|
Item
|
Column 1
To convert a share into a share of this kind:
|
Column 2
These requirements must be met:
|
1 |
An ordinary share (other than a redeemable share) |
No specified requirements (but see Note 1) |
2 | A redeemable share |
The conversion has been approved by a special resolution of the sub-fund of the CCIV to which the share is referable (see also Notes 1 and 2) |
3 |
A preference share (other than a redeemable preference share) |
The holders
'
rights with respect to the matters mentioned in subsection
254G(2)
are set out in the CCIV
'
s constitution (if any) or have been otherwise approved by special resolution of the sub-fund of the CCIV to which the share is referable (see also Note 1) |
Note 1: The variation of class rights provisions (sections
246B
to
246G
) will apply to the conversion.
Note 2: For a director
'
s duty to prevent insolvent trading on converting shares into redeemable shares, see sections
588G
and
1238C
.
1230C(2)
A CCIV may not convert a share into a redeemable preference share.
1230C(3)
A CCIV may convert all or any of its shares into a larger or smaller number. Any amount unpaid on shares being converted is to be divided equally among the replacement shares.
1230C(4)
This section replaces sections
254G
and
254H
for a CCIV.
History
S 1230C inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision B
-
Redemption of shares
History
Subdiv B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230D
REDEMPTIONS TO WHICH THIS SUBDIVISION APPLIES
1230D(1)
This Subdivision applies to both of the following:
(a)
a redemption by a CCIV of a redeemable share;
(b)
a redemption by a CCIV of a redeemable preference share.
Note: A CCIV may reduce its share capital if the reduction results from a redemption permitted by this Subdivision: see section
1231D
.
1230D(2)
Part
2H.2
does not apply to the redemption of redeemable preference shares in a CCIV.
History
S 1230D inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230E
1230E
REDEEMED SHARES TO BE CANCELLED
On redemption by a CCIV, a share is cancelled.
History
S 1230E inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230F
REQUIREMENTS FOR REDEMPTIONS BY ALL CCIVs
Redemption must be in accordance with terms of issue
1230F(1)
A CCIV must not redeem shares if the redemption is not on the terms on which the shares are on issue.
Sub-fund must be solvent
1230F(2)
A CCIV must not redeem shares if, immediately before the redemption:
(a)
the sub-fund to which the shares are referable is insolvent; or
(b)
there are reasonable grounds for suspecting that the sub-fund to which the shares are referable is insolvent, or would become insolvent immediately after the redemption.
Note 1: For when a sub-fund of a CCIV is
solvent
, or
insolvent
, see section
1231A
.
Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub-funds: see section
588G
(as modified by Division
6
of Part
8B.6
).
Consequences of contravention
1230F(3)
If a CCIV redeems shares in contravention of subsection
(1)
or
(2)
:
(a)
the contravention does not affect the validity of the redemption or of any contract or transaction connected with it; and
(b)
the CCIV does not commit an offence.
Fault-based offence
1230F(4)
A person commits an offence if the person is involved in a CCIV
'
s contravention of subsection
(1)
or
(2)
and the involvement is dishonest.
Civil liability
1230F(5)
A person who is involved in a CCIV
'
s contravention of subsection
(1)
or
(2)
contravenes this subsection.
Note: This subsection is a civil penalty provision (see section
1317E
).
History
S 1230F inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230G
FURTHER REQUIREMENTS FOR REDEMPTIONS BY RETAIL CCIVs
Redemption must be permitted by constitution
1230G(1)
A retail CCIV must not redeem shares if the redemption is not permitted by the CCIV
'
s constitution.
Redemption price must be in accordance with constitution
1230G(2)
A retail CCIV must not redeem shares if:
(a)
at the time of the redemption, section
1230H
(about when a sub-fund is liquid) applies to the sub-fund to which the shares are referable; and
(b)
the redemption is not in accordance with the CCIV
'
s constitution.
Redemption must comply with sections 1230J and 1230K if sub-fund is not liquid
1230G(3)
A retail CCIV must not redeem shares if:
(a)
at the time of the redemption, section
1230H
(about when a sub-fund is liquid) does not apply to the sub-fund to which the shares are referable; and
(b)
any of the following apply:
(i)
the CCIV has not offered members an opportunity to redeem shares under section
1230J
;
(ii)
the redemption is not made in satisfaction of a redemption request made in response to the offer;
(iii)
the redemption does not comply with section
1230K
.
Strict liability offence
1230G(4)
An offence based on subsection
(1)
,
(2)
or
(3)
is an offence of strict liability.
Consequences of contravention
1230G(5)
If a CCIV redeems shares in contravention of this section, the contravention does not affect the validity of the redemption or of any contract or transaction connected with it.
Court orders
1230G(6)
If the Court is satisfied, on application under subsection
(7)
, that the consideration for a redemption of shares by a retail CCIV is not in accordance with this section, the Court may make any orders the Court considers appropriate.
1230G(7)
An application to the Court for an order under subsection
(6)
may be made by any of the following:
(a)
ASIC;
(b)
the corporate director of the CCIV;
(c)
a member, or group of members, of the CCIV.
Hide history note
History
S 1230G inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230H
WHEN A SUB-FUND IS LIQUID
1230H(1)
This section applies to a sub-fund of a CCIV at a time if liquid assets account for at least 80% of the value of the assets of the sub-fund at that time.
1230H(2)
For the purposes of subsection
(1)
:
(a)
the following are liquid assets unless it is proved that the CCIV cannot reasonably expect to realise them within the period specified in the constitution for satisfying redemptions while the sub-fund is liquid:
(i)
money in an account or on deposit with a bank;
(ii)
bank accepted bills;
(iii)
marketable securities (as defined in section
9
);
(iv)
property of a kind prescribed by regulations made for the purposes of this subparagraph; and
(b)
any other property is a liquid asset if the corporate director reasonably expects that the property can be realised for its market value within the period specified in the constitution for satisfying redemptions while the sub-fund is liquid.
History
S 1230H inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230J
REDEMPTION OFFERS FOR NON-LIQUID SUB-FUNDS OF RETAIL CCIVs
1230J(1)
A retail CCIV may offer members an opportunity to redeem shares in the CCIV if:
(a)
section
1230H
(about when a sub-fund is liquid) does not apply to the sub-fund to which the shares are referable; and
(b)
the offer is made to the extent that particular assets of the sub-fund are available and able to be converted to money in time to satisfy redemption requests that members may make in response to the offer; and
(c)
no other redemption offer is open in relation to the sub-fund.
1230J(2)
The redemption offer must:
(a)
be in writing; and
(b)
if the constitution of the CCIV specifies procedures for making redemption offers under this section while section
1230H
does not apply to the sub-fund
-
be made in accordance with those procedures.
1230J(3)
The redemption offer must specify:
(a)
the period during which the offer will remain open (this period must last for at least 21 days after the offer is made); and
(b)
the assets that will be used to satisfy redemption requests; and
(c)
the amount of money that is expected to be available when those assets are converted to money; and
(d)
the method for dealing with redemption requests if the money available is insufficient to satisfy all requests.
The method specified under paragraph
(d)
must comply with section
1230K
.
1230J(4)
For joint members, a copy of the redemption offer need only be given to the joint member named first in the register of members.
1230J(5)
As soon as practicable after making the redemption offer, the CCIV must lodge a copy of the offer with ASIC.
1230J(6)
A CCIV that makes a redemption offer under this section:
(a)
may cancel a redemption offer before it closes if the offer contains a material error; and
(b)
must cancel a redemption offer before it closes if it is in the best interests of the members of the sub-fund as a whole to do so.
1230J(7)
If the constitution of the CCIV specifies procedures for cancelling redemption offers under subsection
(6)
, the cancellation must be made in accordance with those procedures.
1230J(8)
As soon as practicable, and in any event within 2 business days, after the cancellation, the CCIV must lodge written notice of the cancellation with ASIC.
Strict liability offence
1230J(9)
An offence based on subsection
(5)
or
(8)
is an offence of strict liability.
History
S 1230J inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230K
SATISFYING REDEMPTION REQUESTS FOR NON-LIQUID SUB-FUNDS OF RETAIL CCIVs
1230K(1)
A retail CCIV that makes a redemption offer under section
1230J
must ensure that redemption requests made in response to the offer are satisfied within 21 days after the offer closes.
1230K(2)
No request made under the redemption offer may be satisfied while the offer is still open.
1230K(3)
If an insufficient amount of money is available from the assets specified in the offer to satisfy all requests, the requests are to be satisfied proportionately in accordance with the formula:
Amount of money available |
× |
Amount shareholder requested to redeem |
Total of all amounts shareholders request to redeem |
History
S 1230K inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision C
-
Partly-paid shares
History
Subdiv C inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230L
1230L
SECTION 254N DOES NOT APPLY TO A CCIV
Section
254N
does not apply to a CCIV.
History
S 1230L inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision D
-
Dividends
History
Subdiv D inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230M
CIRCUMSTANCES IN WHICH A DIVIDEND MAY BE PAID
1230M(1)
A CCIV must not pay a dividend on a share if, immediately before the dividend is paid:
(a)
the sub-fund to which the share is referable is insolvent; or
(b)
there are reasonable grounds for suspecting that the sub-fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid.
Note 1: For when a sub-fund of a CCIV is
solvent
, or
insolvent
, see section
1231A
.
Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub-funds: see section
588G
(as modified by Division
6
of Part
8B.6
).
1230M(2)
Section
254T
does not apply to a CCIV.
History
S 1230M inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230N
1230N
DIVIDEND RIGHTS
Each share in a class of shares in a CCIV has the same dividend rights unless:
(a)
the CCIV
'
s constitution provides for the shares to have different dividend rights; or
(b)
different dividend rights are provided for by special resolution of the sub-fund to which the shares are referable.
History
S 1230N inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision E
-
Notice requirements
History
Subdiv E inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230P
1230P
PART 2H.6 DOES NOT APPLY TO A CCIV
Part
2H.6
does not apply to a CCIV.
History
S 1230P inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision F
-
Cross-investment between sub-funds of a CCIV
History
Subdiv F inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230Q
CROSS-INVESTMENT BETWEEN SUB-FUNDS IS PERMITTED
1230Q(1)
Despite any law, a CCIV may acquire in respect of any of its sub-funds, one or more shares that are referable to another of its sub-funds.
Note: Requirements or restrictions may apply, see section
1230R
.
1230Q(2)
To avoid doubt, a law referred to in subsection
(1)
includes:
(a)
any written law; or
(b)
any unwritten law such as a principle or rule of common law or equity;
that is or has been in force anywhere in Australia or elsewhere.
History
S 1230Q inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230R
REQUIREMENTS OR RESTRICTIONS FOR CROSS-INVESTMENT
1230R(1)
Regulations made for the purposes of this subsection may prescribe either or both of the following:
(a)
one or more requirements for a CCIV to make an acquisition mentioned in subsection
1230Q(1)
;
(b)
one or more restrictions on a CCIV making an acquisition mentioned in subsection
1230Q(1)
.
1230R(2)
Without limiting subsection
(1)
, regulations made for the purposes of that subsection may prescribe requirements or restrictions in relation to one or more of the following:
(a)
all CCIVs;
(b)
a specified class of CCIVs;
(c)
all sub-funds of all CCIVs;
(d)
a specified class of sub-funds of CCIVs;
(e)
all sub-funds of a specified class of CCIVs.
History
S 1230R inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230S
CONSEQUENCES FOR FAILING TO COMPLY WITH REQUIREMENTS OR RESTRICTIONS FOR CROSS-INVESTMENT
1230S(1)
A CCIV to which regulations made for the purposes of subsection
1230R(1)
apply in relation to an acquisition must comply with any applicable requirements or restrictions in those regulations.
Consequences for CCIV of contravention
1230S(2)
If a CCIV contravenes subsection
(1)
:
(a)
the contravention does not affect the validity of the acquisition or of any contract or transaction connected with it; and
(b)
the CCIV does not commit an offence.
Fault-based offence
1230S(3)
A person commits an offence if the person is involved in a CCIV
'
s contravention of subsection
(1)
and the involvement is dishonest.
Civil liability
1230S(4)
A person who is involved in a CCIV
'
s contravention of subsection
(1)
contravenes this subsection.
Note 1: This subsection is a civil penalty provision (see section
1317E
).
Note 2: There are other possible consequences for such a contravention, including the suspension or cancellation of an Australian financial services licence held by the CCIV
'
s corporate director (see paragraph
915C(1)(a)
).
History
S 1230S inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230T
REQUIREMENTS OR RESTRICTIONS ON MEMBERSHIP RIGHTS FOR SHARES ACQUIRED FROM CROSS-INVESTMENT
Voting at a meeting of the CCIV
'
s members
1230T(1)
Despite any other provision of this Act, a CCIV
'
s acquisition mentioned in subsection
1230Q(1)
of one or more shares referable to one of its sub-funds does not entitle the CCIV to vote as a member on a resolution at a meeting of the CCIV
'
s members.
Voting at a meeting of members of a sub-fund of the CCIV
1230T(2)
A CCIV
'
s acquisition mentioned in subsection
1230Q(1)
of one or more shares referable to one of its sub-funds entitles the CCIV to vote as a member on a resolution at a meeting of the members of the sub-fund.
1230T(3)
A CCIV
'
s entitlement to vote as described in subsection
(2)
applies:
(a)
despite any other provision of this Act; but
(b)
subject to any requirements or restrictions prescribed by regulations made for the purposes of this paragraph.
History
S 1230T inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230U
1230U
CROSS-INVESTMENT BETWEEN SUB-FUNDS IS NOT A SHARE BUY-BACK
For the purposes of section
1231C
and Division
2
of Part
2J.1
, the acquisition by a CCIV of any of its shares is not a buy-back of the share if:
(a)
the acquisition is in respect of a sub-fund of the CCIV; and
(b)
the share is referable to another of the CCIV
'
s sub-funds.
History
S 1230U inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1230V
1230V
GENERAL DUTIES STILL APPLY FOR CROSS-INVESTMENT BETWEEN SUB-FUNDS
None of the following:
(a)
the corporate director of a CCIV;
(b)
an officer, or employee, of the corporate director of a CCIV;
is relieved from any of their duties under this Act, or their fiduciary duties, in connection with an acquisition merely because the acquisition is permitted by this Subdivision.
Note: These duties include those in sections
180
,
181
,
182
,
183
and
184
and in Divisions
2
and
3
of Part
8B.3
.
History
S 1230V inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Division 2
-
Transactions affecting share capital
History
Div 2 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision A
-
Reductions in share capital and share buy-backs
History
Subdiv A inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231
1231
PURPOSE
Section
256A
does not apply in relation to a CCIV.
History
S 1231 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231A
CCIV MAY MAKE REDUCTION NOT OTHERWISE AUTHORISED
1231A(1)
A CCIV may reduce its share capital in a way that is not otherwise authorised by law if:
(a)
the reduction is permitted by the CCIV
'
s constitution; and
(b)
immediately before the reduction:
(i)
each sub-fund that the reduction affects is solvent; and
(ii)
there are no reasonable grounds for suspecting that any sub-fund that the reduction affects would become insolvent immediately after the reduction; and
(c)
the reduction complies with any requirements prescribed by regulations made for the purposes of this paragraph.
Note: This Subdivision also deals with some other situations (such as share redemptions) in which reductions of share capital are authorised.
When a sub-fund is
solvent
and
insolvent
1231A(2)
A sub-fund is
solvent
if, and only if, the CCIV is able to pay all the debts that are liabilities of the sub-fund, as and when they become due and payable.
Note: The liabilities of a sub-fund can only be met from assets of the sub-fund: see section
1234A
.
1231A(3)
A sub-fund that is not solvent is
insolvent
.
Regulations
1231A(4)
Without limiting paragraph
(1)(c)
, regulations made for the purposes of that paragraph may prescribe requirements for reductions of share capital, or classes of reductions of share capital, in relation to one or more of the following:
(a)
all CCIVs;
(b)
a specified class of CCIVs;
(c)
all sub-funds of all CCIVs;
(d)
a specified class of sub-funds of CCIVs;
(e)
all sub-funds of a specified class of CCIVs.
Note: An example of a class of a reduction of share capital is an off-market share buy-back.
Certain provisions do not apply to a CCIV
1231A(5)
Division
1
of Part
2J.1
does not apply to a CCIV.
History
S 1231A inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231B
CONSEQUENCES OF MAKING AN UNAUTHORISED REDUCTION
1231B(1)
A CCIV must not make a reduction in share capital if the reduction:
(a)
does not comply with subsection
1231A(1)
; and
(b)
is not otherwise authorised by law.
1231B(2)
If a CCIV contravenes subsection
(1)
:
(a)
the contravention does not affect the validity of the reduction or of any contract or transaction connected with it; and
(b)
the CCIV does not commit an offence.
Fault-based offence
1231B(3)
A person commits an offence if the person is involved in a CCIV
'
s contravention of subsection
(1)
and the involvement is dishonest.
Civil liability
1231B(4)
A person who is involved in a CCIV
'
s contravention of subsection
(1)
contravenes this subsection.
Note 1: This subsection is a civil penalty provision (see section
1317E
).
Note 2: Section
79
defines
involved
.
History
S 1231B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231C
A CCIV
'
s POWER TO BUY BACK ITS OWN SHARES
1231C(1)
A CCIV may buy back its own shares, including redeemable shares and redeemable preference shares.
Note: Cross-investment between sub-funds is not a buy-back (see section
1230U
).
1231C(2)
However, if the buy-back involves a reduction of share capital, the reduction must be authorised by law.
Note: A share buy-back that involves a reduction of share capital will be authorised by law if, for example, the buy-back complies with subsection
1231A(1)
.
1231C(3)
If a CCIV has entered into an agreement to buy back shares, all rights attaching to the shares are suspended. The suspension is lifted if the agreement is terminated.
1231C(4)
A CCIV must not dispose of shares it buys back. An agreement entered into in contravention of this subsection is void.
1231C(5)
Immediately after the registration of the transfer to the CCIV of the shares bought back, the shares are cancelled.
1231C(6)
Division
2
of Part
2J.1
does not apply to a CCIV.
History
S 1231C inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231D
1231D
AUTHORISED REDUCTIONS
-
SHARE REDEMPTIONS
A CCIV may reduce its share capital if:
(a)
the reduction is involved in the redemption of a redeemable share or a redeemable preference share; and
(b)
the redemption complies with section
1230F
; and
(c)
for a retail CCIV
-
the redemption also complies with section
1230G
.
History
S 1231D inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231E
1231E
Authorised reductions
-
regulations
A CCIV may reduce its share capital in circumstances prescribed by regulations made for the purposes of this section.
History
S 1231E inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231F
1231F
Authorised reductions
-
Court orders
A CCIV may reduce its share capital under a Court order.
History
S 1231F inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231G
1231G
AUTHORISED REDUCTIONS
-
RETURN OF FINANCIAL PRODUCT
A CCIV may cancel shares returned to it under Division
5
of Part
7.9
(as that Division applies to the CCIV under section
1241ZA
) and any reduction in the CCIV
'
s share capital that is involved is authorised by this section.
History
S 1231G inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231H
OTHER SHARE CAPITAL REDUCTIONS
1231H(1)
Division
3
of Part
2J.1
applies to a CCIV subject to the modifications set out in this section.
1231H(2)
Section
258D
applies in relation to a CCIV as if a reference to a general meeting were instead a reference to a meeting of the members of each sub-fund of the CCIV to which the shares are referable.
1231H(3)
Sections
258E
and
258F
do not apply to a CCIV.
History
S 1231H inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision B
-
Self-acquisition and control of shares
History
Subdiv B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231J
DIRECTLY ACQUIRING OWN SHARES
1231J(1)
A CCIV must not acquire shares (or units of shares) in itself except:
(a)
in buying back shares under section
1231C
; or
(b)
under a court order; or
(c)
in circumstances covered by section
1230Q
(about cross-investment).
1231J(2)
Section
259A
does not apply to a CCIV.
1231J(3)
Subject to subsection
(1)
, a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:
(a)
for not less than the consideration that would be payable if the share were acquired by another person; and
(b)
subject to terms and conditions that would not disadvantage other members.
Note: A similar limitation applies to the corporate director of a retail CCIV: see section
1224P
.
1231J(4)
If a CCIV contravenes subsection
(1)
or
(3)
:
(a)
the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and
(b)
the CCIV is not guilty of an offence.
Civil liability
1231J(5)
Any person who is involved in a CCIV
'
s contravention of subsection
(1)
or
(3)
contravenes this subsection.
Note 1: This subsection is a civil penalty provision (see section
1317E
).
Note 2: Section
79
defines
involved
.
Fault-based offence
1231J(6)
A person commits an offence if they are involved in a CCIV
'
s contravention of subsection
(1)
or
(3)
and the involvement is dishonest.
History
S 1231J inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231K
1231K
TAKING SECURITY OVER OWN SHARES
Subsection
259B(3)
(about special exemptions for financial institutions) does not apply to a CCIV.
Note: The consequences of contravening subsection
259B(1)
are set out in section
259F
.
History
S 1231K inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision C
-
Financial assistance
History
Subdiv C inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231L
1231L
PART 2J.3 DOES NOT APPLY TO A CCIV
Part
2J.3
does not apply toa CCIV.
History
S 1231L inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision D
-
Interaction with other duties
History
Subdiv D inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231M
1231M
OTHER DUTIES STILL APPLY
To avoid doubt, for the purposes of section
260E
, the duties of a director under this Act include the duties of a corporate director under this Act, including under a provision of this Chapter.
History
S 1231M inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Division 3
-
Debentures
History
Div 3 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231N
DEBENTURES CAN ONLY BE ISSUED IN RESPECT OF SUB-FUNDS
1231N(1)
A CCIV can issue a debenture only if the debenture holder
'
s rights in respect of assets of the CCIV are restricted to rights in respect of the assets of one (and only one) sub-fund of the CCIV. This is the sub-fund to which the debenture is
referable
.
1231N(2)
Subsection
(1)
limits paragraph
124(1)(b)
in relation to a CCIV.
1231N(3)
If a security interest is included in or created by a debenture or the trust deed required by section
283AB
, the security interest must not be over property of the CCIV that forms part of the assets of a different sub-fund of the CCIV.
History
S 1231N inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1231P
1231P
MODIFIED OPERATION OF SECTION 283AA
Paragraph
283AA(1)(a)
has effect in relation to a CCIV as if an offer of debentures was an offer of the kind referred to in that paragraph if the offer gave rise to an obligation to give a Product Disclosure Statement under Chapter
7
(as that Chapter applies to securities in the CCIV under Division
4
of Part
8B.7
).
History
S 1231P inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Division 4
-
Financial reports and audit of CCIVs
History
Div 4 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision A
-
Application of Chapter 2M to CCIVs and their sub-funds
History
Subdiv A inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232
APPLICATION OF CHAPTER 2M TO CCIVs
Application of Chapter 2M to retail CCIVs
1232(1)
Subject to the modifications set out in this Division, Chapter
2M
(about financial reports and audit) applies to a retail CCIV as if:
(a)
references in that Chapter to the directors of, or a director of, the company were instead references to the corporate director of the CCIV; and
(b)
references in that Chapter to a resolution of the directors of the company were instead references to a resolution of the corporate director, passed as director of the CCIV.
Note: Section
1228
deals with directors
'
resolutions for CCIVs.
Application of Part 2M.2 to wholesale CCIVs
1232(2)
Subject to the modifications set out in Subdivision
B
of this Division, Part
2M.2
(about financial records) applies to a wholesale CCIV as if references in that Part to the directors of, or a director of, the company were instead references to the corporate director of the CCIV.
Part 2M.3 does not apply to wholesale CCIVs
1232(3)
Part
2M.3
(about financial reporting) does not apply to a wholesale CCIV.
History
S 1232 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision B
-
Financial records (all CCIVs)
History
Subdiv B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232A
OBLIGATION TO KEEP FINANCIAL RECORDS FOR SUB-FUNDS
1232A(1)
Without limiting the application of subsection
286(1)
to the retail or wholesale CCIV, the CCIV must also, for each sub-fund of the CCIV, keep written financial records that:
(a)
correctly record and explain the transactions relating to the sub-fund and the financial position and performance of the sub-fund; and
(b)
would enable true and fair financial statements to be prepared and audited for the sub-fund; and
(c)
comply with any further requirements prescribed by regulations made for the purposes of this paragraph.
Note: Section
9
defines
financial records
.
1232A(2)
The remaining provisions of Part
2M.2
apply in relation to the financial records for the sub-fund as if the sub-fund were the CCIV.
1232A(3)
This section does not apply if the CCIV has only one sub-fund.
History
S 1232A inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232B
1232B
ACCESS TO FINANCIAL RECORDS OF CCIVs AND SUB-FUNDS
Without limiting the application of subsection
290(1)
or section
1232A
, a director of the corporate director of the retail or wholesale CCIV has the same rights as a director of the CCIV:
(a)
under subsection
290(1)
to access the financial records of the CCIV; and
(b)
under that subsection, as applied by section
1232A
, to access the financial records of a sub-fund of the CCIV; and
(c)
under subsection
290(2)
to apply to the Court for an order.
History
S 1232B inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision C
-
Financial reporting (retail CCIVs only)
History
Subdiv C inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232C
ANNUAL FINANCIAL REPORTS AND DIRECTORS
'
REPORTS FOR SUB-FUNDS
-
GENERAL RULES
1232C(1)
Division
1
of Part
2M.3
applies to a retail CCIV as if:
(a)
subsection
292(1)
required the CCIV to prepare a financial report for each of its sub-funds for each financial year; and
(b)
subsections
292(1)
and
298(1)
required the CCIV to prepare a directors
'
report for each of its sub-funds for each financial year.
Note: The CCIV is not required to prepare such reports for the CCIV itself.
1232C(2)
The remaining provisions of Division
1
of Part
2M.3
apply in relation to the following documents relating to each sub-fund of the retail CCIV:
(a)
a financial report and a directors
'
report referred to in subsection
(1)
of this section;
(b)
the documents of which the financial report consists under subsection
295(1)
;
as if the sub-fund were the CCIV.
Note: The combined effect of subsection
1232(1)
and this subsection is that references in the remaining provisions of Division
1
of Part
2M.3
to the company are, where appropriate, to be read as referring to the sub-fund.
Example: References in the remaining provisions of Division
1
of Part
2M.3
to a listed company will be read as referring to the sub-fund if the sub-fund is listed (see also paragraph
(c)
of the definition of
listed
in section
9
).
1232C(3)
Without limiting subsection
(2)
, Division
1
of Part
2M.3
so applies as if references in that Division to members (other than references to members of an audit firm) were instead references to members of the sub-fund.
1232C(4)
Despite subsection
(2)
, Division
1
of Part
2M.3
applies to the retail CCIV in relation to each of its sub-funds as if:
(a)
references in that Division to the officers of, or an officer of, the company were instead references to each of the following:
(i)
an officer of the CCIV;
(ii)
an officer of the corporate director of the CCIV; and
(b)
despite paragraph
1232(1)(a)
, references in that Division to the directors of, or a director of, the company were instead references to each of the following:
(i)
the corporate director of the CCIV;
(ii)
a director of the corporate director of the CCIV.
1232C(5)
Subparagraphs
(4)(a)(i)
and
(b)(i)
are included for the avoidance of doubt.
History
S 1232C inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232D
ANNUAL FINANCIAL REPORTS AND DIRECTORS
'
REPORTS FOR SUB-FUNDS
-
SPECIAL RULES FOR FINANCIAL REPORTS
1232D(1)
Despite subsection
1232C(2)
, paragraph
295(4)(c)
applies to a directors
'
declaration relating to a sub-fund referred to in subsection
1232C(1)
as if the debts mentioned in that paragraph were only the debts referable to the sub-fund.
1232D(2)
Despite subsection
1232C(2)
, subsection
301(1)
applies to a CCIV referred to in subsection
1232C(1)
in relation to the financial report for each of its sub-funds.
1232D(3)
A financial report for a sub-fund referred to in subsection
1232C(1)
must comply with any further requirements prescribed by regulations made for the purposes of this subsection.
History
S 1232D inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232E
ANNUAL FINANCIAL REPORTS AND DIRECTORS
'
REPORTS FOR SUB-FUNDS
-
SPECIAL RULES FOR DIRECTORS
'
REPORTS
1232E(1)
Section
300
applies in relation to a sub-fund of a CCIV referred to in subsection
1232C(1)
as if:
(a)
a reference in that section to options, shares or interests relating to the CCIV were instead a reference to options, shares or interests referable to the sub-fund; and
(b)
a reference in that section to indemnities given, or insurance premiums paid, in relation to the CCIV were instead a reference to indemnities given, or insurance premiums paid, out of the assets of the sub-fund.
Note: This translation rule applies in addition to the translation rules in subsections
1232C(2)
to
(4)
.
1232E(2)
Subsection
300(13)
applies in relation to a sub-fund of a CCIV referred to in subsection
1232C(1)
as if:
(a)
the sub-fund were a registered scheme; and
(b)
the corporate director of the CCIV were the responsible entity for the scheme; and
(c)
references in that subsection to interests in the scheme were instead references to shares in the CCIV referable to the sub-fund; and
(d)
references in that subsection to scheme property were instead references to the property of the sub-fund.
Note: This translation rule applies in addition to the translation rules in subsections
1232C(2)
to
(4)
.
1232E(3)
If a sub-fund of a CCIV referred to in subsection
1232C(1)
is a listed sub-fund, section
300A
does not apply in relation to the sub-fund.
History
S 1232E inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232F
HALF-YEAR FINANCIAL REPORTS AND DIRECTORS
'
REPORTS FOR SUB-FUNDS WITH ED SECURITIES ON ISSUE
1232F(1)
Section
302
does not apply to a CCIV that is a disclosing entity except as set out in this section.
1232F(2)
If any securities referable to a sub-fund of a retail CCIV are ED securities, section
302
applies to the CCIV as if the requirement in paragraph
302(a)
required the CCIV to prepare a financial report and directors
'
report for each half-year for the sub-fund.
Note: For ED securities in a CCIV, see subsection
111AF(3)
, and section
111AI
as affected by section
1231P
.
1232F(3)
For the purposes of subsection
(2)
, ED securities that are units of shares in a CCIV are referable to the sub-fund of the CCIV to which the shares are referable.
1232F(4)
The remaining provisions of Division
2
of Part
2M.3
apply in relation to the following documents relating to the sub-fund:
(a)
a financial report and directors
'
report prepared under paragraph
302(a)
as applied by subsection
(2)
of this section;
(b)
the documents of which the financial report consists under subsection
303(1)
;
as if the sub-fund were the CCIV.
Note: The combined effect of subsection
1232(1)
and this subsection is that references in the remaining provisions of Division
2
of Part
2M.3
to the disclosing entity are, where appropriate, to be read as referring to the sub-fund.
1232F(5)
Despite subsection
(4)
of this section, paragraph
303(4)(c)
applies to a directors
'
declaration relating to the sub-fund as if the debts mentioned in that paragraph were only the debts referable to the sub-fund.
1232F(6)
Section
306
applies to the sub-fund of the CCIV as if the requirement in subsection
306(1)
were instead a requirement for the directors
'
report for the sub-fund for each half-year to include:
(a)
a review of the sub-fund
'
s operations during the half-year and the results of those operations; and
(b)
details of:
(i)
the name of each corporate director of the CCIV at any time during or since the end of the half-year, and the period for which each was the corporate director; and
(ii)
the name of each director of the corporate director of the CCIV at any time during or since the end of the half-year, and the period for which each was a director of the corporate director.
History
S 1232F inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232G
AUDIT AND AUDITOR
'
S REPORT FOR SUB-FUNDS
1232G(1)
Subject to the modifications set out in this section, Division
3
of Part
2M.3
applies in relation to a sub-fund of a retail CCIV, and in relation to the following documents relating to the sub-fund:
(a)
a financial report prepared as described in subsection
1232C(1)
;
(b)
a financial report prepared as described in section
1232F
;
as if the sub-fund were the CCIV.
Note: The combined effect of subsection
1232(1)
and this subsection is that references in the remaining provisions of Division
3
of Part
2M.3
to the company are, where appropriate, to be read as referring to the sub-fund.
1232G(2)
Without limiting subsection
(1)
, Division
3
of Part
2M.3
so applies as if:
(a)
references in that Division to members (other than references to members of an audit firm) were instead references to members of the sub-fund; and
(b)
references in that Division to an officer included references to an officer of the corporate director of the CCIV.
Audit
1232G(3)
Section
307
applies in relation to the sub-fund of the CCIV as if the requirements in paragraphs
307(c)
and
(d)
do not apply, and as if those paragraphs instead require the auditor to form an opinion about whether the CCIV has kept:
(a)
financial records, relating to the sub-fund, sufficient to enable a financial report, relating to the sub-fund, to be prepared and audited; and
(b)
other records and registers, relating to the sub-fund, as required by this Act.
Reporting to ASIC
1232G(4)
Section
311
applies in relation to the sub-fund of the CCIV as if the requirement in paragraph
311(4)(b)
were a requirement to have regard to the effect that the contravention has, or may have, on:
(a)
the overall financial position of either the CCIV or the sub-fund, or both; or
(b)
the adequacy of the information available about the overall financial position of either the CCIV or the sub-fund, or both.
History
S 1232G inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision D
-
Annual financial reporting to members (retail CCIVs only)
History
Subdiv D inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232H
ANNUAL FINANCIAL REPORTING TO MEMBERS OF SUB-FUNDS
1232H(1)
Section
314
applies to a retail CCIV, in relation to each sub-fund of the CCIV, as if the requirement in subsection
314(1)
were instead a requirement to report to members of the sub-fund for the year by providing either of the following in accordance with subsection
314(1AE)
:
(a)
all of the following reports:
(i)
the financial report and directors
'
report relating to the sub-fund for the year;
(ii)
the auditor
'
s report on the financial report;
(b)
a concise report relating to the sub-fund for the year that complies with subsection
314(2)
.
History
S 1232H(1) amended by No 8 of 2022, s 3, Sch 4[9] (effective 1 July 2022).
1232H(2)
Division
4
of Part
2M.3
applies in relation to a report relating to the sub-fund as if references in that Division to members were instead references to members of the sub-fund.
History
S 1232H inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232J
1232J
DEADLINE FOR REPORTING TO MEMBERS OF SUB-FUNDS
Section
315
applies to a retail CCIV in relation to the members of each sub-fund of the CCIV as if the CCIV were a registered scheme.
History
S 1232J inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232K
1232K
CONSIDERATION OF REPORTS AT AGM
Section
317
does not apply in relation to a retail CCIV.
History
S 1232K inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232L
1232L
ADDITIONAL REPORTING BY CCIVs THAT ARE DEBENTURE ISSUERS
If a retail CCIV was a borrower in relation to debentures at the end of a financial year, section
318
applies to the CCIV, in relation to each sub-fund of the CCIV, as if:
(a)
the requirement in subsection
318(1)
were instead a requirement to give to the trustee for debenture holders, by the deadline for the financial year set by section
315
as applied by section
1232J
, a copy of each of the reports mentioned in paragraph
1232H(1)(a)
for the sub-fund; and
(b)
the right of a debenture holder under paragraph
318(2)(a)
were instead the right to ask the CCIV for copies of the last reports provided under subsection
1232H(1)
to members of the sub-fund; and
(c)
the right of a debenture holder under paragraph
318(2)(b)
were instead the right to ask the CCIV for copies of:
(i)
the full financial report and directors
'
report described in section
1232C
for the sub-fund and prepared for the last financial year; and
(ii)
the auditor
'
s report relating to the sub-fund for the last financial year; and
(d)
the requirement in subsection
318(4)
were instead a requirement to give to the trustee for debenture holders a copy of the half-year financial report, prepared for the sub-fund under section
302
as applied by section
1232F
, within 75 days after the end of the half-year.
History
S 1232L inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision E
-
Lodging reports with ASIC (retail CCIVs only)
History
Subdiv E inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232M
1232M
RELODGEMENT IF FINANCIAL STATEMENTS OR DIRECTORS
'
REPORTS RELATING TO SUB-FUND AMENDED AFTER LODGEMENT
Section
322
applies in relation to a financial report or directors
'
report relating to a sub-fund of a retail CCIV as if references in that section to a member were instead references to a member of the sub-fund.
History
S 1232M inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision F
-
Appointment and removal of auditors (retail CCIVs only)
History
Subdiv F inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232N
CONFLICT OF INTEREST SITUATION
1232N(1)
Subsection
324CD(2)
has effect as if the following item were added to the table in that subsection:
4 |
a retail CCIV |
the corporate director or a former corporate director of the CCIV; or |
|
|
|
a current or former director of the corporate director; or |
|
|
|
a person currently or formerly involved in the management of the CCIV; or |
|
|
|
a person currently or formerly involved in the management of the corporate director. |
|
1232N(2)
Subsection
1232(1)
does not apply for the purposes of subsection
324CD(2)
.
History
S 1232N inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232P
1232P
AUDITOR INDEPENDENCE
-
SPECIFIC REQUIREMENTS
Subdivision
B
of Division
3
of Part
2M.4
applies in relation to a retail CCIV as if:
(a)
references in the table in subsection
324CH(1)
to the audited body included references to the corporate director of the CCIV; and
(b)
references in subsection
324CH(3)
and sections
324CI
,
324CJ
and
324CK
to a listed entity do not include references to a CCIV that is a listed company.
History
S 1232P inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232Q
1232Q
PEOPLE WHO ARE REGARDED AS OFFICERS OF A CCIV
Section
324CL
applies in relation to a retail CCIV as if references in paragraph
324CL(1)(a)
or
(b)
or subsection
324CL(2)
,
(3)
or
(4)
to the company included references to the corporate director of the CCIV.
History
S 1232Q inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232R
APPOINTMENT, REMOVAL AND FEES OF AUDITORS FOR CCIVs
1232R(1)
Division
6
of Part
2M.4
(about appointment, removal and fees of auditors for companies) does not apply to a CCIV.
1232R(2)
Division
7
of Part
2M.4
(about appointment, removal and fees of auditors for registered schemes) applies to a retail CCIV as if:
(a)
the CCIV were a registered scheme; and
(b)
the corporate director of the CCIV were the responsible entity of that scheme.
History
S 1232R inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232S
EFFECT OF WINDING UP OF SUB-FUND ON OFFICE OF AUDITOR
Audit and auditor
'
s report not required to cover a sub-fund in respect of which a CCIV is being wound up
1232S(1)
An auditor of a CCIV is not required by Division
3
of Part
2M.3
, as it applies under subsection
1232G(1)
, to do a thing in relation to a sub-fund at a time if the sub-fund is being wound up at that time.
Auditor ceases to hold office if CCIV is being wound up in respect of all of its sub-funds
1232S(2)
An auditor of a CCIV ceases to hold office if an event mentioned in subsection
(3)
has occurred in relation to each sub-fund of the CCIV.
1232S(3)
The events are as follows:
(a)
a special resolution is passed for the voluntary winding up of a sub-fund of the CCIV;
(b)
an order is made by the Court for the winding up of a sub-fund of the CCIV.
1232S(4)
Section
330
does not apply to a CCIV.
History
S 1232S inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Subdivision G
-
Sanctions for contravention of Chapter 2M
History
Subdiv G inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232T
EXTENDED LIABILITY OF DIRECTORS OF THE CORPORATE DIRECTOR FOR CONTRAVENTIONS OF CHAPTER 2M
1232T(1)
Section
344
applies as if each of the following were a director of a CCIV:
(a)
the corporate director of the CCIV;
(b)
a director of the corporate director of the CCIV.
Note: Section
344
creates civil and criminal liability for contraventions of certain provisions in Chapter
2M
.
1232T(2)
Paragraph
(1)(a)
is included for the avoidance of doubt.
History
S 1232T inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
Division 5
-
Updating ASIC information about CCIVs
History
Div 5 inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).
SECTION 1232U
SOLVENCY RESOLUTIONS
1232U(1)
Part
2N.3
(about solvency resolutions) does not apply in relation to a CCIV.
1232U(2)
Section
348C
(about ASIC requiring a solvency resolution and statement) does not apply in relation to a CCIV.
History
S 1232U inserted by No 8 of 2022, s 3, Sch 1
[
4] (effective 1 July 2022).