THE CORPORATIONS LAW

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]  

A person commits an offence if they are involved in a company's contravention of section 260A and the involvement is dishonest.




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