Corporations Act 2001
CHAPTER 2J
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TRANSACTIONS AFFECTING SHARE CAPITAL
PART 2J.1
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SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS
SECTION 256A
256A
PURPOSE
This Part states the rules to be followed by a company for reductions in share capital and for share buy-backs. The rules are designed to protect the interests of shareholders and creditors by:
(a) addressing the risk of these transactions leading to the company's insolvency
(b) seeking to ensure fairness between the company's shareholders
(c) requiring the company to disclose all material information.
Note: This Chapter is modified for CCIVs: see Division 2 of Part 8B.4 .
View history note
Hide history noteThis Part states the rules to be followed by a company for reductions in share capital and for share buy-backs. The rules are designed to protect the interests of shareholders and creditors by:
(a) addressing the risk of these transactions leading to the company's insolvency
(b) seeking to ensure fairness between the company's shareholders
(c) requiring the company to disclose all material information.
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