CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 290.10 Requirements for explanatory statement to members
CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 290.10
Requirements for explanatory statement to members(1) The proposed explanatory statement lodged under section 290 - 5 must be in writing and set out:
(a) the related parties to whom the proposed resolution would permit financial benefits to be given; and
(b) the nature of the financial benefits; and
(c) in relation to each director of the corporation:
(i) if the director wanted to make a recommendation to members about the proposed resolution--the recommendation and his or her reasons for it; or
(iii) if the director was not available to consider the proposed resolution--why not; and
(d) in relation to each such director:
(i) whether the director had an interest in the outcome of the proposed resolution; and
(e) all other information that:
(i) is reasonably required by members in order to decide whether or not it is in the corporation's interests to pass the proposed resolution; and
(ii) is known to the corporation or to any of its directors.
(2) An example of the kind of information referred to in paragraph (1)(e) is information about what, from an economic and commercial point of view, are the true potential costs and detriments of, or resulting from, giving financial benefits as permitted by the proposed resolution, including (without limitation):
(b) taxation consequences (such as liability to fringe benefits tax); and
(c) benefits forgone by whoever would give the benefits.
Note: Sections 265 - 1 and 265 - 5 require an officer of a
corporation to act honestly and to exercise care and diligence. These duties
extend to preparing an explanatory statement under this section. Section
561 - 5 creates offences where false and misleading material relating
to a corporation's affairs is made available or furnished to members.