THE CORPORATIONS LAW

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL

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

Division 2 - Share buy-backs

SECTION 257A   THE COMPANY'S POWER TO BUY BACK ITS OWN SHARES  

257A     A company may buy back its own shares if:

(a)  the buy-back does not materially prejudice the company's ability to pay its creditors; and

(b)  the company follows the procedures laid down in this Division.

Note 1:

If a company has a constitution, it may include provisions in the constitution that preclude the company buying back its own shares or impose restrictions on the exercise of the company's power to buy back its own shares.

Note 2:

A company may buy-back redeemable preference shares and may do so on terms other than the terms on which they could be redeemed. For the redemption of redeemable preference shares, see sections 254J-254L.