Document ID: chunk:federal_register_of_legislation:C2024C00492:section:6:p85
Version: federal_register_of_legislation:C2024C00492
Segment Type: section
Provision Reference: s 6 (pt 85/175)
Character Range: 386318–389042

or
 (b) was disqualified under subsection 279‑5(5) because ASIC disqualified the person from managing corporations under section 206F or 206GAA of the Corporations Act.
 (3) The person must lodge a notice with the Registrar at least 21 days before commencing the proceedings.
 (4) The order granting leave may be expressed to be subject to exceptions and conditions determined by the Court.
Note: If the Court grants the person leave to manage the corporation, the person may be appointed as a director (see subsection 246‑1(2)) or secretary (see subsection 257‑10(2)) of the corporation.
 (5) The person must lodge with the Registrar a copy of any order granting leave within 14 days after the order is made.
 (6) On application by the Registrar, the Court may revoke the leave. The order revoking leave does not take effect until it is served on the person.

Part 6‑6—Member approval needed for related party benefit

Division 284—Need for member approval

284‑1  Need for member approval for financial benefit
 (1) For an Aboriginal and Torres Strait Islander corporation, or an entity that the corporation controls, to give a financial benefit to a related party of the corporation:
 (a) the corporation or entity must:
 (i) obtain the approval of the corporation's members in the way set out in Division 290; and
 (ii) give the benefit within 15 months after the approval; or
 (b) the giving of the benefit must fall within an exception set out in Division 287.
Note: Section 293‑1 defines related party, section 700‑1 defines entity, section 689‑25 defines control and section 293‑5 affects the meaning of giving a financial benefit.
 (2) If:
 (a) the giving of the benefit is required by a contract; and
 (b) the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and
 (c) the contract was made:
 (i) within 15 months after that approval; or
 (ii) before that approval, if the contract was conditional on the approval being obtained;
member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.

284‑5  Consequences of breach
 (1) If the corporation or entity contravenes section 284‑1:
 (a) the contravention does not affect the validity of any contract or transaction connected with the giving of the benefit; and
 (b) the corporation or entity does not commit an offence.
Note: A Court may order an injunction to stop the corporation or entity giving the benefit to the related party (see section 576‑25).
 (2) A person contravenes this subsection if they are involved in a contravention of section 284‑1 by a corporation or entity.
Note 1: This subsection is a civil