Document ID: chunk:federal_register_of_legislation:F2024C00020:reg:12:p1
Version: federal_register_of_legislation:F2024C00020
Segment Type: reg
Provision Reference: reg 12 (pt 1/2)
Character Range: 28693–31607

12    Requirement for corporate separation

        Requirement for corporate separation

        (1)    The relationship between the first body and each of its VET tuition assurance administrators must be such that at all times:
(a)    each is a separate legal person from the others; and
(b)    none is related to any of the others within the meaning of section 50 of the
     Corporations Act 2001; and
(c)    none is an associated entity of any of the others within the meaning of section 50AAA of that Act; and
(d)    none is in a position to control any of the others within the meaning of section 50AA of that Act; and
(e)    none has half or more of the same directors or officers as any of the others, where director and officer have the meanings given to them by section 9 of that Act.

        If that requirement is breached

        (2)    If at any time the relationship between the first body and any of its VET tuition assurance administrators ceases to comply with subsection (1), the first body must:
(a)    notify the Secretary to that effect in writing as soon as possible; and
(b)    include with that notification either a proposal for changed VET tuition assurance arrangements that comply with subsection (1), or a proposal that is additional to the existing VET tuition assurance arrangements, for the Secretary's approval.

        Secretary can approve a proposal to fix the breach

        (3)    The Secretary may, in writing, approve a proposal included with that notification. If (and while) so approved, that relationship between the first body and the VET tuition assurance administrator is taken to comply with
        subsection (1).

        Matters relevant to proposals

        (4)    For the purposes of paragraph (2)(b), if an additional proposal is included, this additional proposal must include:
(a)    detailed reasons for the non-compliance with subsection (1); and
(b)    detailed reasons explaining why the first body and the VET tuition assurance administrators are prevented from changing the relationship between them so as to comply with subsection (1); and

(c)    details of any proposed alternative arrangements between the first body and the VET tuition assurance administrators that, while not complying with subsection (1), are arrangements that the first body reasonably believes meet the remainder of the VET tuition assurance requirements.

        (5)    Without limiting subsection (4), the proposed alternative arrangements may include any or all of the following:
(a)    a separate unconditional financial guarantee from a third person;
(b)    a trust arrangement with an independent trustee;
(c)    a trust account, with an ADI, specifically established for that purpose.

   13    Meaning of ceases to provide an eligible VET course of study

        The first body ceases to provide an eligible VET course of study to a student who is enrolled as