Section 206K — Corporations Act 2001: Board to approve remuneration consultants

(1) This section applies to a contract (a remuneration consultancy contract): (a) that is for services that include making a remuneration recommendation in relation to one or more members of the key management personnel for a company that is a disclosing entity; and (b) that is between the company and a person (the proposed consultant) who, by making the recommendation under the contract, will be a remuneration consultant. (2) Before a company enters into a remuneration consultancy contract, the proposed consultant must be approved by: (a) the directors of the company; or (b) the members of a committee (the remuneration committee) that: (i) is a committee of the board of directors of the company; and (ii) has functions relating to the remuneration of key management personnel for the company. (3) A contravention of subsection (2): (a) is not an offence except as provided by subsection (4); and (b) does not affect the validity of the contract. (4) The company commits an offence if, at the time the company enters into the contract, the proposed consultant has not been approved in accordance with subsection (2). (5) An offence against subsection (4) is an offence of strict liability. Note: For strict liability, see section 6.1 of the Criminal Code.