18BDuty to notify members of adverse circumstances

18B Duty to notify members of adverse circumstances

[Section 18B of Part 2 Inserted by No. 18 of 2025, s. 9, Applied:01 Jan 2026]

(1)  In this section –

governing documents, in relation to a company, includes –

(a) the statement of expectations in force in respect of the company and its subsidiaries under section 11A ; and

(b) each direction under section 11B in effect in respect of the company and its subsidiaries; and

(c) the statement of corporate intent in force in respect of the company and its subsidiaries under section 11F ; and

(d) the Treasurer’s Instructions in force in respect of the company and its subsidiaries.

(2)  The board of directors of a company must notify the members of the company, in writing, of any development which, in the opinion of the board, may –

(a) prevent or significantly affect the achievement of the objectives, for the company or its subsidiaries, as specified in the governing documents of the company; or

(b) significantly affect the financial viability or operating ability of –

(i) the company and its subsidiaries; or

(ii) any partnership, trust, joint venture or arrangement for the sharing of profits in which the company or its subsidiaries participate; or

(c) prevent the company or its subsidiaries from complying with a direction given to the company, or a subsidiary, under section 11B ; or

(d) significantly affect the ability of the company or its subsidiaries to comply with a direction given to the company, or a subsidiary, under section 11B ; or

(e) otherwise significantly affect the company, or its subsidiaries, in any manner.

(3)  A notification under subsection (2) in respect of a development is to be made as soon as possible after the board of directors becomes aware of the development.