Corporations Act 2001

For a public company, or an entity that the public company controls, to give a financial benefit to a related party of the public company:

the public company or entity must:

obtain the approval of the public company’s members in the way set out in sections 217 to 227; and

give the benefit within 15 months after the approval; or

the giving of the benefit must fall within an exception set out in sections 210 to 216.

For the criminal liability of a person dishonestly involved in a contravention of this subsection, see subsection 209(3).

This section applies to a CCIV in a modified form: see section 1227A.

If:

the giving of the benefit is required by a contract; and

the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and

the contract was made:

within 15 months after that approval; or

before that approval, if the contract was conditional on the approval being obtained;