THE CORPORATIONS LAW

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL

PART 2J.1 - SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS

Division 1 - Reductions in share capital not otherwise authorised by law

SECTION 256D   CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 256B  

256D(1)  [Compliance with sec 256B(1)]  

The company must not make the reduction unless it complies with subsection 256B(1).

256D(2)  [Contravention]  

If the company contravenes subsection (1):

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

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

256D(3)  [Person involved in contravention]  

Any person who is involved in a company's contravention of subsection (1) contravenes this subsection.

Note 1:

Subsection (3) is a civil penalty provision (see section 1317E).

Note 2:

Section 79 defines involved .

256D(4)  [Dishonest involvement]  

A person commits an offence if they are involved in a company's contravention of section 256B and the involvement is dishonest.