Corporations (Aboriginal and Torres Strait Islander) Act 2006
CHAPTER 6
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OFFICERS
PART 6-6
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MEMBER APPROVAL NEEDED FOR RELATED PARTY BENEFIT
Division 284
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Need for member approval
SECTION 284-1
NEED FOR MEMBER APPROVAL FOR FINANCIAL BENEFIT
284-1(1)
For an Aboriginal and Torres Strait Islander corporation, or an entity that the corporation controls, to give a financial benefit to a related party of the corporation: (a) the corporation or entity must:
284-1(2)
If: (a) the giving of the benefit is required by a contract; and (b) the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and (c) the contract was made:
For an Aboriginal and Torres Strait Islander corporation, or an entity that the corporation controls, to give a financial benefit to a related party of the corporation: (a) the corporation or entity must:
(i) obtain the approval of the corporation ' s members in the way set out in Division 290 ; and
(b) the giving of the benefit must fall within an exception set out in Division 287 .
(ii) give the benefit within 15 months after the approval; or
Note:
Section 293-1 defines related party , section 700-1 defines entity , section 689-25 defines control and section 293-5 affects the meaning of giving a financial benefit .
284-1(2)
If: (a) the giving of the benefit is required by a contract; and (b) the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and (c) the contract was made:
(i) within 15 months after that approval; or
(ii) before that approval, if the contract was conditional on the approval being obtained;
member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.