Corporations Act 2001
A scheme's compliance committee must have at least 3 members, and a majority of them must be external members. 601JB(2)
A member of the compliance committee is an external member if they:
(a) are not, and have not been in the previous 2 years, a non-external director, a senior manager or an employee of the responsible entity or a related body corporate; and
(b) are not, and have not been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the responsible entity or a related body corporate; and
(c) are not a member of a partnership that is, or has been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the responsible entity or a related body corporate; and
(d) do not have a material interest in the responsible entity or a related body corporate; and
(e) are not a relative of a person who has a material interest in the responsible entity or a related body corporate.
For the purposes of paragraph (2)(a), a person who is a director of a related body corporate, but not of the responsible entity itself, is an external director of the related body corporate if they would have been an external director of the responsible entity under subsection 601JA(2) had they been a director of the responsible entity. 601JB(4)
A person who is, or has been, either:
(a) an external director of the responsible entity; or
(b) a member of a compliance committee for the scheme or another registered scheme operated by the responsible entity;
is not, merely because of that directorship or membership, taken to be, or to have been, substantially involved in business dealings, or in a professional capacity, with the responsible entity.
If the membership of the scheme's compliance committee ceases to satisfy subsection (1), the responsible entity must make appointments to the committee to satisfy that subsection within 14 days or within any longer period that ASIC has agreed to in writing. 601JB(6)
In agreeing to a longer period under subsection (5), ASIC may impose conditions to be complied with and the responsible entity must comply with them. 601JB(7)
An offence based on subsection (5) or (6) is an offence of strict liability.
Note: For strict liability , see section 6.1 of the Criminal Code .
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