Document ID: chunk:federal_register_of_legislation:C2004A04501:schedule:3:p4
Version: federal_register_of_legislation:C2004A04501
Segment Type: schedule
Provision Reference: sch 3 (pt 4/16)
Character Range: 123576–126420

(b)     the interests of its members as members;

by requiring that, in general, financial benefits to related parties that could diminish or endanger those resources, or that could adversely affect those interests, be disclosed, and approved by a general meeting, before they are given.

Outline

  "243B.(1) Division 2 explains expressions used in this Part.

"(2) Division 3 sets out the prohibitions that give effect to the object of this Part.

"(3) Division 4 creates general exceptions for financial benefits that are consistent with the object of this Part.

"(4) Division 5 enables a public company in general meeting to permit a financial benefit not covered by the general exceptions.

"(5) Division 6 enforces the prohibitions (section 243ZE), creates some other offences (sections 243ZF and 243ZH) and describes how this Part interacts with other laws (section 243ZI).

"Division 2—The meaning of expressions

Entities

  "243C.(1) Each of the following is an entity:

  (a)     a body corporate;

  (b)     a partnership;

  (c)     an unincorporated body;

  (d)     an individual;

  (e)     a trustee of a trust that has only one trustee.

"(2) If a trust has 2 or more trustees, those trustees together constitute an entity.

  "(3) Subject to subsections (1) and (2), if an accounting standard:

    (a)     deals with disclosure in companies' financial statements of information about related parties (for example, about transactions between companies and related parties); and

  (b)     is in force at a particular time (even if the standard does not

     apply to a financial year of a company in which that time occurs); and

   (c) defines the expression 'entity';

the question of what is or was an entity at that time is to be determined in accordance with the definition in the standard.

Parent entities, child entities and sibling entities

  "243D.(1) An entity is a parent entity of another entity if:

    (a)     both are bodies corporate and the first entity is a holding company of the other; or

  (b)     the first entity has control over the other.

"(2) An entity is a child entity of another entity if the other is its parent entity, or is one of its parent entities.

"(3) An entity is a sibling entity of another entity if they have a parent entity in common and neither is a parent entity of the other.

Control

  "243E. If an accounting standard:

    (a)     deals with disclosure in companies' financial statements of information about related parties (for example, about transactions between companies and related parties); and

    (b)     is in force at a particular time (even if the standard does not apply to a financial year of a company in which that time occurs); and

    (c)     provides for determining whether an entity has control over another entity;

the question of whether an