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CORPORATIONS ACT 2001

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL  

PART 2J.1 - SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS  

Division 1 - Reductions in share capital not otherwise authorised by law  

SECTION 256D  CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 256B  

256D(1)  

The company must not make the reduction unless it complies with subsection 256B(1).

256D(2)  

If the company contravenes subsection (1):


(a) the contravention does not affect the validity of the reduction or of any contract or transaction connected with it; and


(b) the company is not guilty of an offence.

256D(3)  

Any person who is involved in a company's contravention of subsection (1) contravenes this subsection.

Note 1: Subsection (3) is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved.

256D(4)  

 View history reference
A person commits an offence if they are involved in a company's contravention of subsection (1) and the involvement is dishonest.

[CCH Note: Act No 180 of 2012, s 3, Sch 7[1] contained the following application provision (which was effective 11 December 2012):

Application of amendments made by this Act

The amendments made by this Act apply in relation to an act or omission by a body corporate occurring on or after the day this Act commences.

]

 



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