---
title: "Check the approval steps before financial assistance is given"
url: "https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-approval-steps-before-financial-assistance-is-given"
type: "task"
site: "AI Law Framework"
id: "A2-TM20261022-15"
practice_area: "Mergers & Acquisitions / Private Equity"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Check the approval steps before financial assistance is given

> 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.…

Canonical page: https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-approval-steps-before-financial-assistance-is-given  
Last reviewed: 2026-10-22

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

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Mergers & Acquisitions / Private Equity](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 / 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 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 does: 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.
- 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. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.

## 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 s 260B, shareholder approval of financial assistance](https://classic.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s260b.html) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/mergers-and-acquisitions-private-equity/check-the-approval-steps-before-financial-assistance-is-given/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.*