Section 208 — Corporations Act 2001 (Cth)

(1) For a public company, or an entity that the public company controls, to give a financial benefit to a related party of the public company:

(a) the public company or entity must:

(i) obtain the approval of the public company’s members in the way set out in sections 217 to 227; and

(ii) give the benefit within 15 months after the approval; or

(b) the giving of the benefit must fall within an exception set out in sections 210 to 216.

Note 1: For the criminal liability of a person dishonestly involved in a contravention of this subsection, see subsection 209(3).

Note 2: This section applies to a CCIV in a modified form: see section 1227A.

(2) If:

(a) the giving of the benefit is required by a contract; and

(b) the making of the contract was approved in accordance with subparagraph (1)(a)(i) as a financial benefit given to the related party; and

(c) the contract was made:

(i) within 15 months after that approval; or

(ii) before that approval, if the contract was conditional on the approval being obtained;

member approval for the giving of the benefit is taken to have been given and the benefit need not be given within the 15 months.

Related sections

• s 206L — Remuneration recommendation by remuneration consultants
• s 206M — Declaration by remuneration consultant
• s 207 — Purpose
• s 209 — Consequences of breach
• s 210 — Arm’s length terms
• s 211 — Remuneration and reimbursement for officer or employee

Research how courts apply s 208

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