Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p9
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 9/16)
Character Range: 135844–138575

are not voting shares.

Financial benefit on arm's length terms

"243N.(1) A public company, or a child entity of a public company, may give a financial benefit to a related party of the public company if it does so on terms and conditions no more favourable to the related party than those on which it is reasonable to expect that the company or entity, as the case may be, would give the benefit directly if dealing with the related party at arm's length in the same circumstances.

"(2) In the case of a loan or other financial accommodation, the matters to consider for the purposes of subsection (1) include, for example:

  (a)     the amount of the loan or the extent of the accommodation;

  (b)     what interest or charges are payable;

  (c)     the credit risk;

  (d)     what security is given;

    (e)     the timetable for repayments of amounts owing and for payments of interest or charges.

Financial benefits to members as such

"243PA. A public company, or a body corporate that is a child entity of a public company, may give financial benefits to any of its own members, in their capacity as members, on a basis that does not discriminate unfairly, either directly or indirectly, in favour of one or more related parties of the public company.

Financial benefit under court order

"243PB. An entity may give a financial benefit to another entity pursuant to an order of a court.

              "Division 5—Financial benefits approved by general meeting of public company

"Subdivision A—Exceptions from the prohibitions

Financial benefit permitted by resolution of members

"243Q. A public company, or a child entity of a public company, may give a financial benefit to a related party of the public company if:

    (a)     a resolution of the public company permits the benefit to be given; and

    (b)     the resolution was passed at a general meeting of the public company held within 15 months before the public company, or the child entity, as the case may be, gives the benefit; and

    (c)     the conditions prescribed by Subdivision B have been satisfied in relation to the resolution.

Financial benefit under contract permitted by resolution of members

"243R.(1) A public company, or a child entity of a public company, may give a financial benefit to a related party of the public company as required by a contract with the related party if:

    (a)     a resolution of the public company permitted the public company, or the child entity, as the case may be, to make the contract; and

  (b)     the resolution was passed at a general meeting of the public

     company held within 15 months before the contract was made; and

     (c) the conditions prescribed by Subdivision B have