Section 1224N — Corporations Act 2001 (Cth)

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.

Related sections

• s 1224K — Corporate director not required to disclose material personal interest
• s 1224L — Corporate director may appoint an agent or engage a person
• s 1224M — Retail CCIV—responsibility of corporate director for certain acts of agents
• 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
• s 1224R — Changes only take effect when ASIC alters record of registration

Research how courts apply s 1224N

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.