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CORPORATIONS ACT 2001

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL  

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

Division 2 - Share buy-backs  

SECTION 257J  

257J  SIGNPOSTS TO OTHER RELEVANT PROVISIONS  

 View history reference
The following table sets out other provisions of this Act that are relevant to buy-backs.
Other provisions relevant to buy-backs
 provisioncomment
1section 588Gliability of directors on insolvency
 section 1317HThe directors may have to compensate the company if the company is, or becomes, insolvent when the company enters into the buy-back agreement.
2section 1324injunctions to restrain contravention
  The Court may grant an injunction against conduct that constitutes, or would constitute, a contravention of this Act.
[CCH Note: There is no item 3 in the table to s 257J.]
4subsection 609(4)application of takeover provisions
 section 611 (item 19 of the table)These sections deal with the application of Chapter 6 to buy-backs.
5section 259Aconsequences of failure to follow procedures - the company and the officers
  If a company fails to follow the procedure in this Division, the company contravenes this section and the officers who are involved in the contravention are liable to a civil penalty under Part 9.4B and may commit an offence.
6section 256Dconsequences of failure to follow procedures if reduction in share capital involved - the company and the officers
  If the buy-back involves a reduction in share capital and the company fails to follow the procedures in this Division, the company contravenes this section and the officers who are involved in the contravention are liable to a civil penalty under Part 9.4B and may commit an offence.
7section 256Dconsequences of failure to follow procedures if reduction in share capital involved - the transaction
  This section provides that a failure to follow the procedures for share capital reductions does not affect the validity of the buy-back transaction itself.
8Chapter 6CAcontinuous disclosure provisions
  Under this Chapter a disclosing entity is required to disclose information about its securities that is material and not generally available.
9Chapter 2Ebenefits to related parties to be disclosed
  Under this Chapter, a financial benefit to a director or other related party may need to be approved at a general meeting before it is given.
10section 125provisions in constitution
  This section deals with the way in which a company's constitution may restrict the exercise of the company's powers and the consequences of a failure to observe these restrictions.
11sections 246B-246Gvariation of class rights
  These sections deal with the variation of rights attached to a class of shares. This variation may be governed by the provisions of a company's constitution.


 



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