THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW 82
The Corporations Law is as follows:...

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

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PART 5C.2 - THE RESPONSIBLE ENTITY

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Division 1 - Responsibilities and powers

SECTION 601FD DUTIES OF OFFICERS OF RESPONSIBLE ENTITY

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601FD(1) [Duties of officer]

An officer of the responsible entity of a registered scheme must:

(a) act honestly; and

(b) exercise the degree of care and diligence that a reasonable person would exercise if they were in the officer's position; and

(c) act in the best interests of the members and, if there is a conflict between the members' interests and the interests of the responsible entity, give priority to the members' interests; and

(d) not make use of information acquired through being an officer of the responsible entity in order to:

(i) gain an improper advantage for the officer or another person; or

(ii) cause detriment to the members of the scheme; and

(e) not make improper use of their position as an officer to gain, directly or indirectly, an advantage for themselves or for any other person or to cause detriment to the members of the scheme; and

(f) take all steps that a reasonable person would take, if they were in the officer's position, to ensure that the responsible entity complies with:

(i) this Law; and

(ii) any conditions imposed on the responsible entity's dealers licence; and

(iii) the scheme's constitution; and

(iv) the scheme's compliance plan.

Note:

Subsection (1) is a civil penalty provision as defined in section 1317DA and Part 9.4B provides for civil and criminal consequences of contravening it.

CCH Note: Section 1317DA was repealed by No 156 of 1999. Part 9.4B only provides for civil consequences of contravening a civil penalty provision as a result of amendments made by No 156 of 1999.

601FD(2) [Conflicting duty]

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A duty of an officer of the responsible entity under subsection (1) overrides any conflicting duty the officer has under section 232.

CCH Note: Section 232 was the section that dealt with the statutory duties of officers prior to the amendments made by No 156 of 1999. Presumably, the reference to sec 232 was intended to be substituted by sec 180, 181, 182, 183 and 184.

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