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
History
Chapter 2J inserted by No 61 of 1998, Sch 1 (effective
1 July 1998).
PART 2J.3 - FINANCIAL ASSISTANCE
History
Part 2J.3 inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
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.
History
S 260A(1) amended by No 54 of 1998, Sch 5, Pt 2 (effective 1 July 1998).
S 260A(1) inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
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.
History
S 260A(2) inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).
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.
History
S 260A(3) inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).