28Provisions relating to approvals by Board

#### 28 Provisions relating to approvals by Board (1) An approval for the purposes of an approval provision: (a) must be given before the investment is made; and (b) may be given subject to one or more of the following: (i) a condition in accordance with which the investment must be made; (ii) a condition that must be complied with at or before the time when the investment is made. (2) If an approval for the purposes of an approval provision is given as mentioned in paragraph (1)(b), the investment must not be made unless the condition or conditions are complied with. (2A) An approval for the purposes of subsection 25(1) must be given subject to a condition that, at the end of a specified period, the total of: (a) all amounts paid on the shares in the investee company held by the PDF; and (b) all amounts remaining unpaid on those shares; must not exceed 30% of the total of: (c) the shareholders’ funds of the PDF; and (d) all amounts remaining unpaid on the issued shares in the PDF. (2B) A PDF contravenes this subsection if: (a) an approval is given for the purposes of subsection 25(1); and (b) the PDF makes the investment; and (c) the PDF engages in conduct; and (d) the PDF’s conduct contravenes the condition covered by subsection (2A). (3) In this section: > approval provision means: (a) paragraph 20(1)(b); or (b) subsection 20(2); or (c) subsection 23(1); or (d) subsection 24(2); or (da) subsection 25(1); or (e) section 27. > engage in conduct means: (a) do an act; or (b) omit to perform an act.