New South Wales Consolidated Acts

AGL CORPORATE CONVERSION ACT 2002 - SECT 38

38 Certain benefits and financial assistance given by registered AGL under a preserved resolution authorised

(1) Registered AGL is authorised on and after the registration day to give a person holding a board or managerial office in relation to registered AGL a benefit in accordance with the terms of any preserved resolution to which section 37 (1) applies.

(2) Registered AGL is authorised to pay remuneration to a director of registered AGL on or after the registration day in accordance with the terms of any preserved resolution to which section 37 (1) applies.

(3) Registered AGL is authorised to give financial assistance to a person to acquire shares in registered AGL on or after the registration day in accordance with the terms of any preserved resolution to which section 37 (1) applies (including any assistance given in accordance with the terms of any employee share scheme approved by any such resolution).

(4) Subsections (1), (2) and (3) are declared to be Corporations legislation displacement provisions for the purposes of section 5G of the Corporations Act 2001 of the Commonwealth in relation to:

(a) in the case of subsection (1)-the provisions of Part 2D.2 of that Act, and

(b) in the case of subsection (2)-the provisions of Part 2D.3 of that Act, and

(c) in the case of subsection (3)-the provisions of Part 2J.3 of that Act.

Note: Section 5G (4) of the Corporations Act 2001 of the Commonwealth provides that a provision of the Corporations legislation does not:

(a) prohibit the doing of an act, or

(b) impose a liability (whether civil or criminal) for doing an act,

if a provision of a law of a State or Territory specifically authorises or requires the doing of that act.
However, section 5G (3) of that Act provides that section 5G will only apply to a provision of a law of a State or Territory enacted after the commencement of that Act if a law of the State or Territory declares the provision to be a Corporations legislation displacement provision for the purposes of that section.

(5) In this section:
"benefit" means a benefit for the purposes of Division 2 of Part 2D.2 of the Corporations Act 2001 of the Commonwealth.
"financial assistance" means financial assistance for the purposes of Part 2J.3 of the Corporations Act 2001 of the Commonwealth.