Check the approval steps before financial assistance is given
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the structure the lawyer marks, list who must approve: the company's own shareholders, and, if the lawyer marks it, the listed domestic corporation or the ultimate holding company. Record whether the meeting notice and accompanying documents were lodged with ASIC before the notice was sent, whether a notice in the prescribed form was lodged at least 14 days before the assistance, and whether each special resolution was lodged within 14 days after it was passed. Do not draft the statement or the resolution, and do not name the prescribed form.
- What the lawyer must review
- The lawyer decides who must approve, what is material to the vote, whether information was previously disclosed, and whether the lodgements are in time. The lawyer settles the statement and the resolution.
- 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 structure the lawyer marks, list who must approve: the company's own shareholders, and, if the lawyer marks it, the listed domestic corporation or the ultimate holding company. Record whether the meeting notice and accompanying documents were lodged with ASIC before the notice was sent, whether a notice in the prescribed form was lodged at least 14 days before the assistance, and whether each special resolution was lodged within 14 days after it was passed. Do not draft the statement or the resolution, and do not name the prescribed form. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- The company's own shareholders approve by a special resolution at a general meeting with no votes cast in favour by the person acquiring the shares or units, or by their associates, or by a resolution agreed to at a general meeting by all ordinary shareholders.
- If the company will be a subsidiary of a listed domestic corporation immediately after the acquisition, that corporation's shareholders must also pass a special resolution. If the company will have an unlisted domestic holding company that is not itself a subsidiary of a domestic corporation, that holding company must also pass a special resolution.
- The notice of meeting must include a statement of all information known to the company or body that is material to the vote, except information previously disclosed where it would be unreasonable to require disclosure again. The tool does not write that statement.
- Before the notice is sent to members, lodge with ASIC a copy of the notice and any document about the assistance that will accompany it. The company must lodge a notice in the prescribed form at least 14 days before the assistance is given. The form was not opened. Do not name it.
- A special resolution passed for subsection (1), (2) or (3) must be lodged with ASIC within 14 days after it is passed. The unanimous ordinary-shareholder resolution is not described as a special resolution.
- This procedure is the section 260B gate. It is not a substitute for deciding material prejudice under section 260A, and it is not preparation of a scheme booklet.
Sources
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.