CORPORATIONS ACT 2001

CHAPTER 2H - SHARES  

PART 2H.2 - REDEMPTION OF REDEEMABLE PREFERENCE SHARES  

SECTION 254L   CONSEQUENCES OF CONTRAVENING SECTION 254J OR 254K  

254L(1)   [ Effect of contravention]  

If a company redeems shares in contravention of section 254J or 254K:


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


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

254L(2)   [ Person involved in contravention]  

Any person who is involved in a company's contravention of section 254J or 254K contravenes this subsection.

Note 1: Subsection (2) is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved .

254L(3)   [ Dishonest involvement]  

A person commits an offence if they are involved in a company's contravention of section 254J or 254K and the involvement is dishonest.


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