Section 601SCD — Corporations Act 2001: Arm’s length transactions

(1) A licensed trustee company that operates a common fund that is not a registered scheme must not give a financial benefit in relation to the common fund to a related party. Note: Failure to comply with this subsection is an offence (see subsection 1311(1)). (2) Subsection (1) does not apply if the financial benefit is given on terms that: (a) would be reasonable in the circumstances if the trustee company and the related party were dealing at arm’s length; or (b) are less favourable to the related party than the terms referred to in paragraph (a). (3) In this section: related party has the meaning given by section 228, as if references in that section to a public company were references to a licensed trustee company.