Commonwealth Consolidated Acts

CORPORATIONS (ABORIGINAL AND TORRES STRAIT ISLANDER) ACT 2006 - SECT 287.1

Benefits that are reasonable remuneration to employees

  (1)   Member approval is not needed to give a financial benefit if:

  (a)   the benefit is remuneration to a related party as an employee of the following:

  (i)   the corporation;

  (ii)   an entity that the corporation controls;

  (iii)   an entity that controls the corporation;

  (iv)   an entity that is controlled by an entity that controls the corporation; and

  (b)   to give the remuneration would be reasonable given:

  (i)   the circumstances of the corporation or entity giving the remuneration; and

  (ii)   the related party's circumstances (including the responsibilities involved in the employment, the employee's experience and performance record and the employee's length of service).

Remuneration of officers

  (2)   If an Aboriginal and Torres Strait Islander corporation's constitution provides for the remuneration of officers, member approval is not needed to give a financial benefit if:

  (a)   the benefit is remuneration to a related party as a director or officer of the following:

  (i)   the corporation;

  (ii)   an entity that the corporation controls;

  (iii)   an entity that controls the corporation;

  (iv)   an entity that is controlled by an entity that controls the corporation; and

  (b)   to give the remuneration would be reasonable given:

  (i)   the circumstances of the corporation or entity giving the remuneration; and

  (ii)   the related party's circumstances (including the responsibilities involved in the office, the officer's experience and performance record and the officer's length of service).

Benefits that are payments of expenses incurred

  (3)   Member approval is not needed to give a financial benefit if:

  (a)   the benefit is payment of expenses incurred or to be incurred, or reimbursement for expenses incurred, by a related party in performing duties as an officer or employee of the following:

  (i)   the corporation;

  (ii)   an entity that the corporation controls;

  (iii)   an entity that controls the corporation;

  (iv)   an entity that is controlled by an entity that controls the corporation; and

  (b)   to give the benefit would be reasonable in the circumstances of the corporation or entity giving the remuneration.

  (4)   For the purposes of this section:

  (a)   a contribution made by an Aboriginal and Torres Strait Islander corporation or related body corporate to a fund for the purpose of making provision for, or obtaining, superannuation benefits for an officer of the corporation or related body corporate, or for dependants of an officer of the corporate or related body corporate, is remuneration provided by the body to the officer of the body; and

  (b)   a financial benefit given to a person because of the person ceasing to hold an office or employment as an officer or employee of a body corporate is remuneration paid or provided to the person in a capacity as an officer of the body.