THE CORPORATIONS LAW

CHAPTER 2H - SHARES

PART 2H.1 - ISSUING AND CONVERTING SHARES

SECTION 254E   COURT VALIDATION OF ISSUE  

254E(1)  [Court may make order]  

On application by a company, a shareholder, a creditor or any other person whose interests have been or may be affected, the Court may make an order validating, or confirming the terms of, a purported issue of shares if:

(a)  the issue is or may be invalid for any reason; or

(b)  the terms of the issue are inconsistent with or not authorised by:

(i) this Law; or

(ii) another law of this jurisdiction; or

(iii) the company's constitution (if any).

254E(2)  [Lodgment with ASIC]  

On lodgment of a copy of the order with ASIC, the order has effect from the time of the purported issue.