Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 200B

Benefits in connection with retirement if person has held a managerial or executive office

  (1)   An entity mentioned in subsection   (1AA) must not give a person a benefit in connection with a person's (the retiree's ) retirement from an office, or position of employment, in a company or a related body corporate if:

  (a)   the office or position is a managerial or executive office; or

  (b)   the retiree has, at any time during the last 3 years before his or her retirement, held a managerial or executive office in the company or a related body corporate;

unless there is member approval under section   200E for the giving of the benefit.

Note 1:   This subsection extends to benefits given by way of compensation for, or otherwise in connection with, a person's loss of an office or position (see subsections   200A(1) and (3)).

Note 2:   Sections   200F, 200G and 200H provide for exceptions to this subsection.

Note 3:   The recipient of the benefit need not be the retiree.

Note 4:   This section has a modified operation in relation to CCIVs: see section   1224ZD.

  (1AA)   The entities are as follows:

  (a)   the company;

  (b)   an associate of the company (other than a body corporate that is related to the company and is itself a company);

  (c)   a prescribed superannuation fund in relation to the company.

  (1A)   For an offence based on subsection   (1), strict liability applies to the circumstance, that the benefit is in connection with the retiree's, or someone else's, retirement.

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

Prescribed superannuation funds

  (2)   For the purposes of this section:

  (a)   a superannuation fund is taken to be a prescribed superannuation fund in relation to a company if the company, or an associate of the company, gives a benefit to the superannuation fund in prescribed circumstances; and

  (b)   if a prescribed superannuation fund in relation to a company gives a benefit to another superannuation fund in prescribed circumstances, the other superannuation fund is taken to be a prescribed superannuation fund in relation to the company.

Prescribed circumstances

  (3)   For the purposes of this section, if:

  (a)   a company, or an associate of a company, gives a benefit to a superannuation fund solely for the purpose of enabling or assisting the superannuation fund to give to a person a benefit in connection with the retiree's retirement from an office or position in the company or a related body corporate; or

  (b)   a superannuation fund gives a benefit to another superannuation fund solely for the purpose of enabling or assisting the other superannuation fund to give to a person a benefit in connection with the retiree's retirement from an office or position in a company or a related body corporate;

the benefit first referred to in paragraph   (a) or (b) is taken to be given in prescribed circumstances.

  (4)   In this section:

"superannuation fund" means a provident, benefit, superannuation or retirement fund.