Section 601SCDCorporations Act 2001 (Cth)

Arm’s length transactions

(1) A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party.

Note: Failure to comply with this subsection is an offence (see subsection 1311(1)).

(2) Subsection (1) does not apply if the financial benefit is given on terms that:

(a) would be reasonable in the circumstances if the trustee company and the related party were dealing at arm’s length; or

(b) are less favourable to the related party than the terms referred to in paragraph (a).

(3) In this section:

related party has the meaning given by section 228, as if references in that section to a public company were references to a licensed trustee company.

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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