Check whether a financial benefit to a related party needs member approval
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the proposed benefit, the parties and the dates, list the public company or controlled entity, the related party named in the file, the date of any member approval, and the date the benefit is to be given. Do not decide whether an exception applies.
- What the lawyer must review
- The lawyer decides whether the benefit is a financial benefit to a related party of a public company, whether an exception applies, and whether the approval and the 15-month period are satisfied.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the proposed benefit, the parties and the dates, list the public company or controlled entity, the related party named in the file, the date of any member approval, and the date the benefit is to be given. Do not decide whether an exception applies. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- For a public company, or an entity the public company controls, to give a financial benefit to a related party of the public company, the company or entity must obtain member approval in the way set out in sections 217 to 227 and give the benefit within 15 months after the approval, or the benefit must fall within an exception in sections 210 to 216.
- Do not describe the exceptions. The lawyer decides whether one applies.
- If the benefit is required by a contract, the making of the contract was approved as a financial benefit, and the contract was made within 15 months after that approval, or before the approval if it was conditional on the approval, member approval for giving the benefit is taken to have been given and the benefit need not be given within 15 months.
- The lawyer decides whether the parties and the benefit are within the section.
Sources
- Corporations Act 2001 (Cth) s 208 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.