THE CORPORATIONS LAW

CHAPTER 11 - APPLICATION AND TRANSITIONAL PROVISIONS

PART 11.2 - COMMENCEMENT AND APPLICATION OF CERTAIN CHANGES TO THIS LAW

Division 10A - Changes resulting from Schedule 5 to the Company Law Review Act 1998

SECTION 1447   SHARE CAPITAL-USE OF AMOUNT STANDING TO CREDIT OF SHARE PREMIUM ACCOUNT  

1447     A company may use the amount standing to the credit of its share premium account immediately before commencement to:

(a)  provide for the premium payable on redemption of debentures or redeemable preference shares issued before commencement; or

(b)  write off:

(i) the preliminary expenses of the company incurred before commencement; or

(ii) expenses incurred, payments made, or discounts allowed, on or before commencement, in respect of any issue of shares in, or debentures of, the company.

Note:

After commencement, a company will be able to issue bonus shares without transferring an amount to the share capital account (see section 254A).