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 LAW
THE 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.
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