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CORPORATIONS ACT 2001

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL  

PART 2J.3 - FINANCIAL ASSISTANCE  

SECTION 260A  FINANCIAL ASSISTANCE BY A COMPANY FOR ACQUIRING SHARES IN THE COMPANY OR A HOLDING COMPANY  

260A(1)  

A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if:


(a) giving the assistance does not materially prejudice:


(i) the interests of the company or its shareholders; or

(ii) the company's ability to pay its creditors; or


(b) the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or


(c) the assistance is exempted under section 260C.

Note: For the criminal liability of a person dishonestly involved in a contravention of this section, see subsection 260D(3). Section 79 defines involved.

[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.

]

260A(2)  

Without limiting subsection (1), financial assistance may:


(a) be given before or after the acquisition of shares (or units of shares); and


(b) take the form of paying a dividend.

260A(3)  

Subsection (1) extends to the acquisition of shares (or units of shares) by:


(a) issue; or


(b) transfer; or


(c) any other means.

 



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