16Loan fund company not to discriminate against or in favour of persons

16 Loan fund company not to discriminate against or in favour of persons

16 Loan fund company not to discriminate against or in favour of persons

Subject to sections 17 and 19, a loan fund company shall not:

(a) discriminate against or in favour of a person:

(i) by granting to the person an option to acquire loan entitlement shares in the company,

(ii) by allotting to the person qualifying shares in the company, or

(iii) by allotting to the person loan entitlement shares in the company,

on terms and conditions that are less favourable or, as the case may be, more favourable than those on which the company grants any such options, or allots any such qualifying shares or loan entitlement shares, to other persons, or

(b) in making or offering a loan to the holder of loan entitlement shares in the company:

(i) discriminate against the holder by making or offering the loan on terms and conditions less favourable, or

(ii) discriminate in the holder’s favour by making or offering the loan on terms and conditions more favourable,

than those on which loans are made or offered to other holders of loan entitlement shares in the company.

Maximum penalty: 10 penalty units.

s 16: Am 1992 No 112, Sch 1.