CORPORATIONS ACT 2001 - SECT 1233L Meaning of liabilities --sub - fund of a CCIV

CORPORATIONS ACT 2001 - SECT 1233L

  (1)   The liabilities of a sub - fund of a CCIV at a particular time are the following:

  (a)   liabilities of the CCIV that relate solely to the business of the sub - fund;

  (b)   liabilities of the CCIV not covered by paragraph   (a), to the extent that it is fair and reasonable in the circumstances to allocate the liability to the sub - fund at the time having regard to the following matters:

  (i)   the extent to which the liability, when it arose, related to the business of the sub - fund;

  (ii)   the extent to which assets of the sub - fund, and assets of other sub - funds, of the CCIV have been applied to meet the liability;

  (iii)   the regulations (if any) made for the purposes of subsection   (4).

Note:   Section   1233A is about references to the liabilities of a CCIV.

Effect of an allocation determination

  (2)   Despite subsection   (1), if:

  (a)   a particular proportion of a liability of a CCIV is allocated to a sub - fund of the CCIV at a time under a determination made under section   1233M (including a determination as varied under section   1233N); and

  (b)   the determination is operative at the time (see subsection   1233M(4));

that proportion of the liability is taken to form part of the liabilities of the sub - fund at that time.

Effect of a Court order about an arrangement or reconstruction

  (3)   Despite subsections   (1) and (2), the liabilities of a sub - fund of a CCIV:

  (a)   include liabilities that, in accordance with a Court order made under section   1235F (about arrangements and reconstructions of sub - funds), are to be liabilities of the sub - fund; and

  (b)   do not include liabilities that, in accordance with an order made under that section, are no longer to be liabilities of the sub - fund.

Regulations

  (4)   The regulations may provide for and in relation to matters to be considered in determining the extent to which a liability of a CCIV forms part of the liabilities of a sub - fund of the CCIV.