Section 601JD — Corporations Act 2001 (Cth)

(1) A member of a scheme’s compliance committee must:

(a) act honestly; and

(b) exercise the degree of care and diligence that a reasonable person would exercise if they were in the member’s position; and

(c) not make use of information acquired through being a member of the committee in order to:

(i) gain an improper advantage for the member or another person; or

(ii) cause detriment to the members of the scheme; and

(d) not make improper use of their position as a member of the committee to gain, directly or indirectly, an advantage for themselves or for any other person or to cause detriment to the members of the scheme.

(2) A member of the compliance committee is to take all reasonable steps to assist ASIC in carrying out a check under subsection 601FF(1).

(3) A person who contravenes, or is involved in a contravention of, subsection (1) contravenes this subsection.

Note 1: Section 79 defines involved.

Note 2: Subsection (3) is a civil penalty provision (see section 1317E).

(4) A person must not intentionally or recklessly contravene, or be involved in a contravention of, subsection (1).

Related sections

• s 601JA — When is a compliance committee required?
• s 601JB — Membership of compliance committee
• s 601JC — Functions of compliance committee
• s 601JE — Compliance committee members have qualified privilege in certain cases
• s 601JF — When can responsible entity indemnify compliance committee members?
• s 601JG — When can responsible entity pay insurance premiums for compliance committee members?

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