Benefit to or by closely‑held subsidiary

In force

(1)

Member approval is not needed to give a financial benefit if the benefit is given:

(a)

by a body corporate to a closely‑held subsidiary of the body; or

(b)

by a closely‑held subsidiary of a body corporate to the body or an entity it controls.

(2)

For the purposes of this section, a body corporate is a closely‑held subsidiary of another body corporate if, and only if, no member of the first‑mentioned body is a person other than:

(a)

the other body; or

(b)

a nominee of the other body; or

(c)

a body corporate that is a closely‑held subsidiary of the other body because of any other application or applications of this subsection; or

(d)

a nominee of a body referred to in paragraph (c).

(3)

For the purposes of subsection (2), disregard shares that are not voting shares.

This Act’s bill:Explanatory memorandum Second reading speech

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214 Benefit to or by closely‑held subsidiary