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CORPORATIONS ACT 2001

CHAPTER 2E - RELATED PARTY TRANSACTIONS  

PART 2E.1 - MEMBER APPROVAL NEEDED FOR RELATED PARTY BENEFIT  

Division 2 - Exceptions to the requirement for member approval  

SECTION 213  SMALL AMOUNTS GIVEN TO RELATED ENTITY  

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213(1)  [Monetary limit]  


Member approval is not needed to give a financial benefit to a related party in a financial year if the total of the following amounts or values is less than or equal to the amount prescribed by the regulations for the purposes of this section:


(a) the amount or value of the financial benefit;


(b) the total of all other amounts or values of financial benefits given to the related party, in the financial year, for which member approval was not needed because of this section.

213(2)  [Calculation of amount]  


In working out the total of the amounts or values referred to in paragraphs (1)(a) and (b):


(a) add in all amounts or values of financial benefits given to the related party in the financial year by:


(i) the public company or entity; and

(ii) any entities controlled by the public company or entity; and


(b) disregard:


(i) amounts that have been repaid; and

(ii) amounts that fall under any other exception in this Part.

For the purposes of this subsection, the time at which the entity must be controlled by the public company is the time at which the financial benefit is given.

[CCH Note: Act No 101 of 2007, Sch 1, Pt 6[240] contained the following application provision (which was effective 1 July 2007):

Application of item 190

The amendment made by item 190 of this Schedule applies to a financial year that begins on or after the day on which that item commences.

]

 



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