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CORPORATIONS ACT 2001

CHAPTER 5D - LICENSED TRUSTEE COMPANIES    View history reference

PART 5D.2 - POWERS ETC. OF LICENSED TRUSTEE COMPANIES    View history reference

Division 3 - Common funds    View history reference

SECTION 601SCD  ARM'S LENGTH TRANSACTIONS  

 View history reference

601SCD(1)  

A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

601SCD(2)  

Subsection (1) does not apply if the financial benefit is given on terms that:


(a) would be reasonable in the circumstances if the trustee company and the related party were dealing at arm's length; or


(b) are less favourable to the related party than the terms referred to in paragraph (a).

601SCD(3)  

In this section:

financial benefit has a meaning that is affected by section 229.

related party has the meaning given by section 228, as if references in that section to a public company were references to a licensed trustee company.


 



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