---
title: "Check a proposed financial benefit against the related-party approval rule"
url: "https://ailawframework.com/practice/in-house-general-counsel/check-a-proposed-financial-benefit-against-the-related-party-approval-ru"
type: "task"
site: "AI Law Framework"
id: "A40-PE20261022-6"
practice_area: "In-House / General Counsel"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check a proposed financial benefit against the related-party approval rule

> From the board paper and the draft agreement, list the giver, whether it is a public company or an entity the public company controls, the recipient, the benefit, whether a contract requires the benefit, and any date…

Canonical page: https://ailawframework.com/practice/in-house-general-counsel/check-a-proposed-financial-benefit-against-the-related-party-approval-ru  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [In-House / General Counsel](https://ailawframework.com/practice/in-house-general-counsel.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the board paper and the draft agreement, list the giver, whether it is a public company or an entity the public company controls, the recipient, the benefit, whether a contract requires the benefit, and any date of an earlier member approval. The tool does not decide that an exception applies. |
| What the lawyer must review | The lawyer decides whether the recipient is a related party, whether the benefit needs member approval under section 208, which of sections 210 to 216 if any is an exception, and whether the approval steps in sections 217 to 227 and the 15-month limit are met. |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

Trace relied-on content to independent sources and check for relevant material the output has missed.

- What the AI does: From the board paper and the draft agreement, list the giver, whether it is a public company or an entity the public company controls, the recipient, the benefit, whether a contract requires the benefit, and any date of an earlier member approval. The tool does not decide that an exception applies.
- What the lawyer does: The lawyer decides whether the recipient is a related party, whether the benefit needs member approval under section 208, which of sections 210 to 216 if any is an exception, and whether the approval steps in sections 217 to 227 and the 15-month limit are met.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Start with section 208(1): a public company, or an entity it controls, must obtain member approval in the way sections 217 to 227 set out and give the benefit within 15 months, unless an exception in sections 210 to 216 applies.
2. If a contract requires the benefit, check section 208(2) before assuming the 15-month limit still governs a benefit given later.
3. The note to section 208(1) points to subsection 209(3) for criminal liability of a person dishonestly involved in a contravention. Do not treat the civil approval question as the end of the review.
4. Section 208 applies to a CCIV in a modified form under section 1227A. Use that section if the giver is a CCIV.

## Notes

- 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.

## Sources

- [Corporations Act 2001 (Cth) s 208, member approval for a financial benefit](https://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s208.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/in-house-general-counsel/check-a-proposed-financial-benefit-against-the-related-party-approval-ru/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*