THE CORPORATIONS LAW

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL

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

Division 3 - Other share capital reductions

SECTION 258E   OTHER SHARE CANCELLATIONS  

258E(1)  (Authorised reduction of share capital)  

Any reduction in share capital involved in:

(a)  the redemption of redeemable preference shares out of the proceeds of a new issue of shares made for the purpose of the redemption (see section 254K); or

(b)  a company's buying-back of its own shares under sections 257A to 257J if the shares are paid for out of share capital.

(c)  (Repealed by No 156 of 1999, Sch 3, Pt 1 (effective 13 March 2000).)

is authorised by this section.

258E(2)  (Cancellation of returned shares)  

A company may cancel shares returned to it under section 651C, 724(2), 737 or 738 and any reduction in the company's share capital that is involved is authorised by this subsection.

258E(3)  (Reduction by order)  

Any reduction in a company's share capital because of an order under section 1325A is authorised by this subsection.