SECTION 208 NEED FOR MEMBER APPROVAL FOR FINANCIAL BENEFIT
(a) the public company or entity must:
(i) obtain the approval of the public company's members in the way set out in sections 217 to 227; 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 sections 210 to 216.
Note 1: Section 228 defines related party, section 9 defines entity, section 50AA defines control and section 229 affects the meaning of giving a financial benefit.
Note 2: For the criminal liability of a person dishonestly involved in a contravention of this subsection, see subsection 209(3). Section 79 defines involved.
S 208(1) amended by No 180 of 2012, s 3, Sch 1- (effective 11 December 2012).
[CCH Note: Act No 180 of 2012, s 3, Sch 7 contained the following application provision (which was effective 11 December 2012):
Application of amendments made by this ActThe amendments made by this Act apply in relation to an act or omission by a body corporate occurring on or after the day this Act commences.
The amendments made by this Act apply in relation to an act or omission by a body corporate occurring on or after the day this Act commences.
(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.