CORPORATIONS ACT 2001 - SECT 200C Benefits on transfer of undertaking or property need membership approval

CORPORATIONS ACT 2001 - SECT 200C

  (1)   A person must not give a benefit to a person who:

  (a)   holds, or has at any previous time held, a managerial or executive office in a company or a related body corporate; or

  (b)   is the spouse of a person referred to in paragraph   (a); or

  (c)   is a relative of a person referred to in paragraph   (a) or of the spouse of such a person; or

  (d)   is an associate of a person referred to in paragraph   (a) or the spouse of an associate of such a person;

in connection with the transfer of the whole or any part of the undertaking or property of the company.

Note:   This section has a modified operation in relation to CCIVs: see section   1224ZD.

  (2)   For an offence based on subsection   (1), strict liability applies to the circumstance, that the transfer is in connection with the transfer of the whole or any part of the undertaking or property of the company.

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

  (3)   Subsection   (1) does not apply to the extent that there is member approval under section   200E.

Note:   A defendant bears an evidential burden in relation to the matter in subsection   (3), see subsection   13.3(3) of the Criminal Code .