Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p7
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 7/16)
Character Range: 130995–133672

not give a financial benefit to a related party of the public company except as permitted by Division 4 or 5.

Definitions:

  'public company': see the definition in section 9 (note especially paragraph (b) of the definition); 'give a financial benefit': see section 243G;

  'related party': see section 243F;

  'child entity': see subsection 243D(2).

"Division 4—General exceptions

Financial benefit under contract made before section 243H begins to apply

"243J.(1) Section 243H does not prevent a public company, or a child entity of a public company, from giving a financial benefit to a related party of the public company as required by a contract made before the day on and after which that section applies to the public company because of section 1376.

  "(2) Subsection (1) does not apply if:

    (a)     section 234, a corresponding law, or a corresponding previous law, prohibited the making of the contract; or

    (b)     immediately before that day, section 234 or a corresponding law prohibited the public company or child entity from giving the benefit to the related party.

Remunerating officers

"243K.(1) A body corporate may pay or provide remuneration to a person in a capacity as an officer of the body if it is reasonable for a body corporate in the body's circumstances to pay or provide that remuneration to an officer in the person's circumstances.

"(2) A body corporate may pay or provide remuneration to a person in a capacity as an officer of the body if:

    (a)     the body does so as required by a contract between the body and the person; and

    (b)     it was reasonable for a body corporate in the body's circumstances to make that contract with an officer in the person's circumstances.

"(3) An entity may give a financial benefit to a person in the person's capacity as an officer of a body corporate if subsection (1) or (2) would permit the body itself to give the benefit to the person in that capacity.

"(4) Any of the following paid by a body corporate to an officer of the body as such (however the rate or amount is worked out) is remuneration paid by the body to the officer:

  (a)     salary;

  (b)     wages;

  (c)     bonuses;

    (d)     allowances paid for the sole purpose of meeting expenses incurred in connection with performing services as such an officer.

"(5) A benefit that is in the nature of a fringe benefit and is provided by a body corporate to an officer of the body as such is remuneration provided by the body to the officer.

"(6) A contribution made by a body corporate to a fund for the purpose of making provision for, or obtaining, superannuation benefits for an officer of the body,