10HDuty to notify members of adverse circumstances

10H Duty to notify members of adverse circumstances

[Section 10H Inserted by No. 18 of 2025, s. 38, Applied:01 Jan 2026]

(1)  In this section –

governing documents, in relation to the Company, includes –

(a) the statement of expectations in force in respect of the Company and its subsidiaries under section 10A ; and

(b) each direction under section 10B 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 10F ; and

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

(2)  The Board must notify the members, 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 10B ; 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 10B ; 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 becomes aware of the development.