Just like under the Corporations Act, CATSI Act corporations cannot give a financial benefit to a related party without the approval of that corporation’s members.
Does your corporation have a process for managing related party benefits? Are you clear on what a financial benefit is and who a related party is?
With individuals involved in breaches of the related party benefit provisions liable for penalties of up to $220,000 and 5 years imprisonment, it’s critical that you do.
Danielle Lee and Alana Bernstein will discuss this topic and look at, in the context of Aboriginal communities:
- Who is a related party (when everyone is family)?
- What is a financial benefit?
- How can members give their approval?
- How can groups implement a process for managing related party benefits transactions in a simple and effective manner?
Danielle is a member of Jackson McDonald’s Corporate and Commercial Group and works closely with the Indigenous practice team. Danielle’s main practice areas are corporate advisory, governance and equity capital markets. She advises a range of Australian companies and Aboriginal corporations on corporate transactions including capital raisings, business and share acquisitions, shareholder agreements and joint venture arrangements. Danielle has a particular interest in corporate governance and legal risk management. She advises clients on on compliance and governance issues under the Corporations Act, Corporations (Aboriginal and Torres Strait Islander) Act and the ASX Listing Rules at both a strategic and operational level.
Alana is a solicitor in Jackson McDonald’s Corporate and Commercial Group with a strong focus on indigenous organisations and trusts. Alana has existing relationships with a number of indigenous organisations and regularly provides them with advice in relation to the establishment of or changes to corporate structures, interpretation of and amendments to Rulebooks, directors’ duties and corporate governance, development of policies and the interpretation of agreements and statutory obligations.
Date: TBA August 2015
Time: 4.00pm - 6.00pm
Venue: Jackson McDonald, Level 17, 225 St Georges Terrace, Perth
Cost: $25 (includes light refreshments)