CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 293.5 Giving a financial benefit

CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 293.5

  (1)   In determining what constitutes giving a financial benefit :

  (a)   give a broad interpretation to financial benefits being given, even if criminal or civil penalties may be involved; and

  (b)   the economic and commercial substance of conduct is to prevail over its legal form; and

  (c)   disregard any consideration that is or may be given for the benefit, even if the consideration is adequate.

  (2)   Giving a financial benefit includes the following:

  (a)   giving a financial benefit indirectly, for example, through 1 or more interposed entities;

  (b)   giving a financial benefit by making an informal agreement, oral agreement or an agreement that has no binding force;

  (c)   giving a financial benefit that does not involve paying money (for example by conferring a financial advantage).

  (3)   The following are examples of giving a financial benefit to a related party:

  (a)   giving or providing the related party finance or property;

  (b)   buying an asset from or selling an asset to the related party;

  (c)   leasing an asset from or to the related party;

  (d)   supplying services to or receiving services from the related party;

  (e)   issuing securities or granting an option to the related party;

  (f)   taking up or releasing an obligation of the related party.