Document ID: chunk:federal_register_of_legislation:C2004A03231:body:0:p40
Version: federal_register_of_legislation:C2004A03231
Segment Type: other
Provision Reference: 
Character Range: 99563–102403

time the trustees of the trust and had incurred the liability, would have been entitled to be fully indemnified in respect of the liability by one or more of the other trustees;
     'liability' means a debt, liability or other obligation;
     'registered overseas foreign company' means a registered foreign company that was formed or incorporated outside Australia;
     'relevant corporation' means—
         (a) a company;
         (b) a registered overseas foreign company; or
         (c) a foreign company that is neither a registered overseas foreign company nor a recognised foreign company.".

Loans to directors
67. Section 230 of the Principal Act is amended—
     (a) by omitting from sub-paragraph (1) (a) (iii) "or" (last occurring);

     (b) by inserting after sub-paragraph (1) (a) (iii) the following sub-paragraph:
          "(iiia) a trustee of a trust under which a corporation has a beneficial interest, where a person referred to in sub-paragraph (i) or (ii) has, or 2 or more such persons together have, a relevant interest or relevant interests in shares in the corporation the nominal value of which is not less than 10% of the nominal value of the issued share capital of the corporation, being a loan made to the trustee in his capacity as trustee; or";
     (c) by omitting from sub-paragraph (1) (a) (iv) "direct or indirect beneficial interest" and substituting "relevant interest or relevant interests";
     (d) by omitting sub-section (2) and substituting the following sub-section:
    "(2) For the purposes of sub-section (1), where—
         (a) a company—
             (i) makes a loan to a corporation, or gives a guarantee or provides security in connection with a loan made to a corporation; or
             (ii) makes a loan to a trustee of a trust under which a corporation has a beneficial interest, or gives a guarantee or provides security in connection with a loan made to a trustee of a trust under which a corporation has a beneficial interest;
         (b) the company has a relevant interest or relevant interests in shares in the corporation; and
         (c) a person has, or 2 or more persons together have, a relevant interest or relevant interests in shares in the company,
    the matters referred to in paragraphs (b) and (c) shall be disregarded for the purpose of determining whether the person has, or the persons together have, as the case may be, a relevant interest or relevant interests in the shares referred to in paragraph (b).";
     (e) by omitting from paragraphs (5) (a) and (b) "or" (last occurring);
     (f) by inserting after paragraph (5) (b) the following paragraph:
         "(ba) in the case of a loan made to, or a guarantee given or security provided in relation to a loan made to, a trustee of a trust under which a corporation (in this paragraph referred