Circumstances in which a dividend may be paid
(1) A CCIV must not pay a dividend on a share if, immediately before the dividend is paid: (a) the sub‑fund to which the share is referable is insolvent; or (b) there are reasonable grounds for suspecting that the sub‑fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid. Note 1: For when a sub‑fund of a CCIV is solvent, or insolvent, see section 1231A. Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub‑funds: see section 588G (as modified by Division 6 of Part 8B.6). (2) Section 254T does not apply to a CCIV.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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