sec.17CWho is eligible to be covenantor under deed of covenant and assurance

### sec.17C Who is eligible to be covenantor under deed of covenant and assurance A person is eligible to enter a deed of covenant and assurance as a covenantor in favour of a licensee that is a corporation, if the person is— a director of the corporation; or a related body corporate of the corporation. Also, a person is eligible to enter a deed of covenant and assurance as a covenantor in favour of a licensee if the person is— for a licensee who is a trustee of a trust—a beneficiary of the trust; or for a licensee who is, or is to be, an entity carrying on business in a partnership—another partner in the partnership; or for a licensee that is a group company—another group company in the same corporate group. However, a person is only eligible under subsection (1) or (2) if the person holds net tangible assets, worked out under division 1 as if a reference to a licensee were a reference to the person, of an amount that is at least equal to the value of the deed of covenant asset. In this section— related body corporate , of a corporation, means— a related body corporate of the corporation under the Corporations Act , section 50 ; or another corporation that has the same shareholders or directors as the corporation. s 17C ins 2019 SL No. 30 s 23 (sec.17C-ssec.1) A person is eligible to enter a deed of covenant and assurance as a covenantor in favour of a licensee that is a corporation, if the person is— a director of the corporation; or a related body corporate of the corporation. (sec.17C-ssec.2) Also, a person is eligible to enter a deed of covenant and assurance as a covenantor in favour of a licensee if the person is— for a licensee who is a trustee of a trust—a beneficiary of the trust; or for a licensee who is, or is to be, an entity carrying on business in a partnership—another partner in the partnership; or for a licensee that is a group company—another group company in the same corporate group. (sec.17C-ssec.3) However, a person is only eligible under subsection (1) or (2) if the person holds net tangible assets, worked out under division 1 as if a reference to a licensee were a reference to the person, of an amount that is at least equal to the value of the deed of covenant asset. (sec.17C-ssec.4) In this section— related body corporate , of a corporation, means— a related body corporate of the corporation under the Corporations Act , section 50 ; or another corporation that has the same shareholders or directors as the corporation. - (a) a director of the corporation; or - (b) a related body corporate of the corporation. - (a) for a licensee who is a trustee of a trust—a beneficiary of the trust; or - (b) for a licensee who is, or is to be, an entity carrying on business in a partnership—another partner in the partnership; or - (c) for a licensee that is a group company—another group company in the same corporate group. - (a) a related body corporate of the corporation under the Corporations Act , section 50 ; or - (b) another corporation that has the same shareholders or directors as the corporation.