CORPORATIONS ACT 2001 - SECT 1233K When property must be converted into money etc.

CORPORATIONS ACT 2001 - SECT 1233K

  (1)   This section applies if, as a result of the operation of section   1233H, a single item of property of a CCIV forms part of the assets of 2 or more sub - funds of the CCIV.

  (2)   For the purposes of subsection   (1), treat an item of property as a single item if the item would generally be applied or dealt with as an indivisible item in the ordinary course of commercial dealing.

Note:   An example of a single item of property is a share or unit in a unit trust.

  (3)   The corporate director of the CCIV must apply the item of property to obtain other money or fungible property, so as to achieve the result that, when subsection   1233H(1) is applied to the other money or property to determine the extent to which it forms part of the assets of the sub - funds, no single item of property forms part of the assets of 2 or more sub - funds.

Note:   This conversion is intended to ensure that the assets of a sub - fund can be kept separate and distinct from the assets of other sub - funds.

  (4)   The conversion required by subsection   (3) must be completed as soon as practicable after the item of property is acquired.

Fault - based offence

  (5)   A person commits an offence if:

  (a)   the person is subject to a requirement under this section; and

  (b)   the person fails to comply with the requirement.