Section 1234BCorporations Act 2001 (Cth)

Purposes for which sub‑fund assets may be applied

This section covers the following purposes:

(a) meeting liabilities of the sub‑fund;

(b) carrying on the business of the sub‑fund;

(c) paying a dividend to members of the sub‑fund;

(d) providing consideration to a member of the sub‑fund in respect of a reduction of share capital affecting the sub‑fund;

(e) redeeming redeemable shares or redeemable preference shares that are referable to the sub‑fund;

(f) making a payment covered by section 1237Y (about winding up);

(g) making a payment covered by section 1236K (about certain priority payments by a receiver);

(h) complying with a compromise or arrangement relating to the sub‑fund and approved by the Court under paragraph 411(4)(b), or an order made under section 413 in relation to such a compromise or arrangement;

(i) making any other distribution to members of the sub‑fund that the CCIV is permitted by this Act and its constitution to make;

(j) a purpose prescribed by regulations made for the purposes of this paragraph.

Note: The assets may also be applied in accordance with a court order: see subsection 1234E(2).

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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