Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 1224N

    If the corporate director of a retail CCIV is to have any rights to be paid fees out of assets of a sub - fund of the CCIV, or to be indemnified out of assets of a sub - fund of the CCIV for liabilities or expenses incurred in relation to the performance of its duties, those rights:

  (a)   must be specified in the CCIV's constitution; and

  (b)   must be available only in relation to the proper performance of those duties;

and any other agreement or arrangement has no effect to the extent that it purports to confer such a right.

Note 1:   ASIC may direct the CCIV to modify its constitution to ensure such rights are dealt with in adequate detail: see subsection   1223C(2).

Note 2:   Sections   199A to 199C may prohibit giving an indemnity for the corporate director of a CCIV. Those sections have extended operation in relation to a CCIV: see section   1225E.