Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1230m
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1230M
Character Range: 5110630–5111311

1230M  Circumstances in which a dividend may be paid
 (1) A CCIV must not pay a dividend on a share if, immediately before the dividend is paid:
 (a) the sub‑fund to which the share is referable is insolvent; or
 (b) there are reasonable grounds for suspecting that the sub‑fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid.
Note 1: For when a sub‑fund of a CCIV is solvent, or insolvent, see section 1231A.
Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub‑funds: see section 588G (as modified by Division 6 of Part 8B.6).
 (2) Section 254T does not apply to a CCIV.