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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