Section 1230M — Corporations Act 2001: Circumstances in which a dividend may be paid

(1) A CCIV must not pay a dividend on a share if, immediately before the dividend is paid: (a) the sub-fund to which the share is referable is insolvent; or (b) there are reasonable grounds for suspecting that the sub-fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid. Note 1: For when a sub-fund of a CCIV is solvent, or insolvent, see section 1231A. Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub-funds: see section 588G (as modified by Division 6 of Part 8B.6). (2) Section 254T does not apply to a CCIV.