THE CORPORATIONS LAW
CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:
PART 13 - THE CORPORATIONS LAWTHE CORPORATIONS LAW 82 The Corporations Law is as follows:...
CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL
PART 2J.3 - FINANCIAL ASSISTANCE
SECTION 260A FINANCIAL ASSISTANCE BY A COMPANY FOR ACQUIRING SHARES IN THE COMPANY OR A HOLDING COMPANY 260A(1) [May assist in limited circumstances] A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if: (a) giving the assistance does not materially prejudice:
(i) the interests of the company or its shareholders; or
(ii) the company's ability to pay its creditors; or(b) the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or (c) the assistance is exempted under section 260C.
260A(2) [Timing of assistance] Without limiting subsection (1), financial assistance may: (a) be given before or after the acquisition of shares (or units of shares); and (b) take the form of paying a dividend.
260A(3) [Mode of acquisition] Subsection (1) extends to the acquisition of shares (or units of shares) by: (a) issue; or (b) transfer; or (c) any other means.