Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For an Aboriginal and Torres Strait Islander corporation, or an entity that the corporation controls, to give a financial benefit to a related party of the corporation:
(a) the corporation or entity must:
(i) obtain the approval of the corporation's members in the way set out in Division 290; and
(ii) give the benefit within 15 months after the approval; or
(b) the giving of the benefit must fall within an exception set out in Division 287.
Note: Section 293 - 1 defines related party , section 700 - 1 defines entity , section 689 - 25 defines control and section 293 - 5 affects the meaning of giving a financial benefit .
(2) If:
(a) the giving of the benefit is required by a contract; and
(b) the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and
(c) the contract was made:
(i) within 15 months after that approval; or
(ii) before that approval, if the contract was conditional on the approval being obtained;
member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.