Document ID: chunk:federal_register_of_legislation:C2025C00012:clause:1_1224d:p1
Version: federal_register_of_legislation:C2025C00012
Segment Type: clause
Provision Reference: sch 1 cl 1224D (pt 1/3)
Character Range: 47024–49599

1224D  Duties owed by director

Duties owed by a director of any CCIV
 (1) A director of a CCIV must, in exercising its powers and carrying out its duties:
 (a) act honestly; and
 (b) act in the best interests of the members of the CCIV and, if there is a conflict between the interests of those members and its own interests, give priority to the members' interests; and
 (c) act in the best interests of the members, as a whole, of each sub‑fund of the CCIV and:
 (i) if there is a conflict between the interests of the members, as a whole, of a sub‑fund and its own interests, give priority to the members' interests; and
 (ii) if there is a conflict between the interests of the members, as a whole, of a sub‑fund and the best interests of the members of the CCIV, give priority to the interests of the members of the CCIV; and
 (d) have in place adequate arrangements for the management of conflicts of interest that may arise wholly, or partially, in relation to activities undertaken by the director in exercising those powers and carrying out those duties; and
 (e) not make use of information acquired through being a director of the CCIV in order to:
 (i) gain an improper advantage for the director or another person; or
 (ii) cause detriment to the members of the CCIV.
Note: This subsection is a civil penalty provision (see section 1317E).

Additional duties owed by a director of a retail CCIV
 (2) A director of a retail CCIV must, in exercising its powers and carrying out its duties:
 (a) exercise the degree of care and diligence that a reasonable person would exercise in the director's position; and
 (b) treat members of the CCIV who hold shares of the same class equally; and
 (c) treat members of the CCIV who hold shares of different classes fairly; and
 (d) treat members of different sub‑funds of the CCIV fairly; and
 (e) ensure that the CCIV's constitution meets the requirements of this Act; and
 (f) ensure that the CCIV's compliance plan meets the requirements of section 1226A; and
 (g) comply with the CCIV's compliance plan; and
 (h) ensure that:
 (i) assets and liabilities of the sub‑funds of the CCIV are clearly identified; and
 (ii) any property of the CCIV to which section 1233K (about property that has to be converted) applies is clearly identified; and
 (iii) any liabilities of the CCIV to which section 1233M (about liabilities allocated to 2 or more sub‑funds) applies is clearly identified; and
 (i) ensure that assets of a sub‑fund of the CCIV are held in the manner required by section 1234J; and
 (j) ensure that the assets