Corporations Act 2001

CHAPTER 2E - RELATED PARTY TRANSACTIONS  

PART 2E.2 - RELATED PARTIES AND FINANCIAL BENEFITS  

SECTION 229   GIVING A FINANCIAL BENEFIT  

229(1)   [ Determination of financial benefit]  

In determining whether a financial benefit is given for the purposes of this Chapter:


(a) give a broad interpretation to financial benefits being given, even if criminal or civil penalties may be involved; and


(b) the economic and commercial substance of conduct is to prevail over its legal form; and


(c) disregard any consideration that is or may be given for the benefit, even if the consideration is adequate.

229(2)   [ ``giving a financial benefit'']  

Giving a financial benefit includes the following:


(a) giving a financial benefit indirectly, for example, through 1 or more interposed entities;


(b) giving a financial benefit by making an informal agreement, oral agreement or an agreement that has no binding force;


(c) giving a financial benefit that does not involve paying money (for example by conferring a financial advantage).

229(3)   [ Examples]  

The following are examples of giving a financial benefit to a related party:


(a) giving or providing the related party finance or property;


(b) buying an asset from or selling an asset to the related party;


(c) leasing an asset from or to the related party;


(d) supplying services to or receiving services from the related party;


(e) issuing securities or granting an option to the related party;


(f) taking up or releasing an obligation of the related party.


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.