Directors' and associates' interests in subsidiary or parent corporation
7 Directors' and associates' interests in subsidiary or parent corporation
Neither a director of a subsidiary nor an associate of a director of a subsidiary may, without the approval of the parent corporation's
Minister—
have or acquire a beneficial interest in shares in, debentures of or managed investment schemes of the subsidiary, its parent corporation or any other subsidiary of its parent corporation; or
have or hold or acquire (whether alone or with another person or persons) a right or option in respect of the acquisition or disposal of shares in, debentures of or interests in managed investment schemes of the subsidiary, its parent corporation or any other subsidiary of its parent corporation; or
be a party to, or entitled to a benefit under, a contract under which a person has a right to call for or make delivery of shares in, debentures of or interests in managed investment schemes of the subsidiary, its parent corporation or any other subsidiary of its parent corporation.
A director of a subsidiary must not counsel, procure, induce or be in any way (whether by act or omission or directly or indirectly) knowingly concerned in, or party to, a contravention of subclause (1).
Penalty:
If an intention to deceive or defraud is proved—Division 4 fine or
division 4 imprisonment, or both.
In any other case—Division 6 fine.
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