Document ID: chunk:federal_register_of_legislation:C2025C00185:section:208
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 208
Character Range: 687689–688903

208  Need for member approval for financial benefit
 (1) For a public company, or an entity that the public company controls, to give a financial benefit to a related party of the public company:
 (a) the public company or entity must:
 (i) obtain the approval of the public company's members in the way set out in sections 217 to 227; and
 (ii) give the benefit within 15 months after the approval; or
 (b) the giving of the benefit must fall within an exception set out in sections 210 to 216.
Note 1: For the criminal liability of a person dishonestly involved in a contravention of this subsection, see subsection 209(3).
Note 2: This section applies to a CCIV in a modified form: see section 1227A.
 (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.