Document ID: chunk:federal_register_of_legislation:C2025C00012:clause:1_1224d:p2
Version: federal_register_of_legislation:C2025C00012
Segment Type: clause
Provision Reference: sch 1 cl 1224D (pt 2/3)
Character Range: 49366–51964

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 of a sub‑fund of the CCIV are valued at regular intervals appropriate to the nature of the assets; and
 (k) ensure that all payments out of the assets of the CCIV are made in accordance with the CCIV's constitution and this Act; and
 (l) carry out or comply with any other duty, not inconsistent with this Act, that is conferred on the director by the CCIV's constitution.
Note: This subsection is a civil penalty provision (see section 1317E).

Additional duties owed by a director of a wholesale CCIV
 (3) A director of a wholesale 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.
 (4) A director of a wholesale CCIV contravenes this subsection if:
 (a) the director contravenes paragraph (3)(a), (b), (c) or (d); and
 (b) either:
 (i) the constitution of the CCIV does not exempt the director from liability for the contravention; or
 (ii) the contravention was dishonest or involved a lack of good faith.
Note: This subsection is a civil penalty provision (see section 1317E).

Duties under this section prevail in case of conflict
 (5) If there is a conflict between a duty owed by a director of a CCIV under this section and a duty owed by the director under Part 2D.1, the duty owed under this section prevails.

Interaction with other laws etc.
 (6) Subsection (1) or (2):
 (a) has effect in addition to, and not in derogation of, any rule of law relating to the duty or liability of a person because of their office or employment in relation to a corporation; and
 (b) does not prevent the commencement of civil proceedings for a breach of a duty or in respect of a liability referred to in paragraph (a).

Interaction with section 199A
 (7) Section 199A does not prevent a wholesale CCIV from exempting or indemnifying a director of the CCIV from a liability incurred in relation to a contravention of subsection (3) if the contravention:
 (a) is not dishonest; and
 (b) does not involve a lack of good faith.
To avoid doubt, this subsection does not affect the operation of section 199A in relation