Corporations Act 2001

The responsible entity of a registered scheme must establish a compliance committee if less than half of the directors of the responsible entity are external directors.

A director of the responsible entity is an external director if they:

are not, and have not been in the previous 2 years, an employee of the responsible entity or a related body corporate; and

are not, and have not been in the previous 2 years, a senior manager of a related body corporate; and

are not, and have not been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the responsible entity or a related body corporate; and

are not a member of a partnership that is, or has been in the previous 2 years, substantially involved in business dealings, or in a professional capacity, with the responsible entity or a related body corporate; and

do not have a material interest in the responsible entity or a related body corporate; and

are not a relative of a person who has a material interest in the responsible entity or a related body corporate.

The responsible entity must establish the compliance committee within 14 days after it is required to do so by subsection (1) or within any longer period that ASIC has agreed to in writing.

A person must not intentionally or recklessly fail to comply with subsection (3).

In agreeing to a longer period under subsection (3), ASIC may impose conditions to be complied with and the responsible entity must comply with them.

An offence based on subsection (4) is an offence of strict liability.

For strict liability, see section 6.1 of the Criminal Code.