THE CORPORATIONS LAW
CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:
PART 13 - THE CORPORATIONS LAWTHE CORPORATIONS LAW 82 The Corporations Law is as follows:...
CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL
PART 2J.3 - FINANCIAL ASSISTANCE
SECTION 260D CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 260A 260D(1) [No effect on validity] If a company provides financial assistance in contravention of section 260A: (a) the contravention does not affect the validity of the financial assistance or of any contract or transaction connected with it; and (b) the company is not guilty of an offence.
260D(2) [Civil penalty] Any person who is involved in a company's contravention of section 260A contravenes this subsection.
Note 1:Subsection (2) is a civil penalty provision (see section 1317E).
Note 2:Section 79 defines involved .
260D(3) [Dishonest involvement] 260A and the involvement is dishonest.