Corporations Act 2001
The following table lists other provisions of this Act that are relevant to reductions in share capital.
|Other provisions relevant to reductions in share capital|
|1||section 588G||liability of directors on insolvency|
|section 1317H||Under the combined operation of these sections the directors may have to compensate the company if the company is, or becomes, insolvent when the company reduces its share capital.|
|2||section 1324||injunctions to restrain contravention|
|Under this section the Court may grant an injunction against conduct that constitutes or would constitute a contravention of this Act.|
|[ CCH Note: There is no item 3 in the table to s 256E. ]|
|4||Chapter 6CA||continuous disclosure provisions|
|Under this Chapter a disclosing entity is required to disclose information about its securities that is material and not generally available.|
|5||Chapter 2E||benefits to related parties to be disclosed|
|Under this Chapter a financial benefit to a director or other related party that could adversely affect the interests of a public company's members as a whole must be approved at a general meeting before it can be given.|
|6||section 125||provisions in constitution|
|This section deals with the way in which a company's constitution may restrict the exercise of the company's powers and the consequences of a failure to observe these restrictions.|
|7||sections 246B-246G||variation of class rights|
|These sections deal with the variation of rights attached to a class of shares. This variation may be governed by the provisions of the company's constitution.|
S 256E amended by No 122 of 2001, s 3, Sch 2 [ 22] (effective 11 March 2002).
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