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 B - Self-acquisition and control of shares  

SECTION 1231J   DIRECTLY ACQUIRING OWN SHARES  

1231J(1)    
A CCIV must not acquire shares (or units of shares) in itself except:

(a)    in buying back shares under section 1231C ; or

(b)    under a court order; or

(c)    in circumstances covered by section 1230Q (about cross-investment).

1231J(2)    
Section 259A does not apply to a CCIV.

1231J(3)    
Subject to subsection (1) , a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:

(a)    for not less than the consideration that would be payable if the share were acquired by another person; and

(b)    subject to terms and conditions that would not disadvantage other members.

Note: A similar limitation applies to the corporate director of a retail CCIV: see section 1224P .

1231J(4)    
If a CCIV contravenes subsection (1) or (3) :

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

(b)    the CCIV is not guilty of an offence.

Civil liability

1231J(5)    
Any person who is involved in a CCIV ' s contravention of subsection (1) or (3) contravenes this subsection.

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

Note 2: Section 79 defines involved .

Fault-based offence

1231J(6)    
A person commits an offence if they are involved in a CCIV ' s contravention of subsection (1) or (3) and the involvement is dishonest.