Corporations Act 2001

CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES  

PART 8B.4 - CORPORATE FINANCE AND FINANCIAL REPORTING FOR CCIVs  

Division 2 - Transactions affecting share capital  

Subdivision A - Reductions in share capital and share buy-backs  

SECTION 1231B   CONSEQUENCES OF MAKING AN UNAUTHORISED REDUCTION  

1231B(1)    
A CCIV must not make a reduction in share capital if the reduction:

(a)    does not comply with subsection 1231A(1) ; and

(b)    is not otherwise authorised by law.

1231B(2)    
If a CCIV contravenes subsection (1) :

(a)    the contravention does not affect the validity of the reduction or of any contract or transaction connected with it; and

(b)    the CCIV does not commit an offence.

Fault-based offence

1231B(3)    
A person commits an offence if the person is involved in a CCIV ' s contravention of subsection (1) and the involvement is dishonest.

Civil liability

1231B(4)    
A person who is involved in a CCIV ' s contravention of subsection (1) contravenes this subsection.

Note 1: This subsection is a civil penalty provision (see section 1317E ).

Note 2: Section 79 defines involved .