Section 1224M — Corporations Act 2001 (Cth)

(1) Subsection (2) applies in relation to a retail CCIV for the purpose of determining whether:

(a) there is a liability to the CCIV or the CCIV’s members; or

(b) the corporate director has properly performed its duties for the purposes of section 1224N.

Note: A CCIV’s constitution may provide for the corporate director to be indemnified for liabilities—see section 1224N.

Extended liability for acts of agents

(2) If:

(a) the corporate director appoints an agent, or otherwise engages a person, under section 1224L; or

(b) an agent or person is taken under subsection 1224L(2) (about sub‑agents) to be an agent of the corporate director;

the corporate director is taken to have done (or failed to do) anything that the agent or person has done (or failed to do) because of the appointment or engagement, even if the person or agent was acting fraudulently or outside the scope of the authority or engagement.

Note: This subsection does not apply to receivers: see section 1236F.

Related sections

• s 1224J — Corporate director must operate the CCIV
• s 1224K — Corporate director not required to disclose material personal interest
• s 1224L — Corporate director may appoint an agent or engage a person
• s 1224N — Retail CCIV—limitation on right of corporate director to fees and indemnities
• s 1224P — Retail CCIV—limitation on right of corporate director to acquire shares in CCIV
• s 1224Q — Exercise of powers while sub‑fund is in liquidation

Research how courts apply s 1224M

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