Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A CCIV must not pay a dividend on a share if, immediately before the dividend is paid:
(a) the sub - fund to which the share is referable is insolvent; or
(b) there are reasonable grounds for suspecting that the sub - fund to which the share is referable is insolvent, or would become insolvent immediately after the dividend is paid.
Note 1: For when a sub - fund of a CCIV is solvent , or insolvent , see section 1231A.
Note 2: The directors of the corporate director have a duty to prevent insolvent trading by sub - funds: see section 588G (as modified by Division 6 of Part 8B.6).
(2) Section 254T does not apply to a CCIV.