THE CORPORATIONS LAW

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL

PART 2J.1 - SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS

SECTION 256A   PURPOSE  

256A     This Part states the rules to be followed by a company for reductions in share capital and for share buy-backs. The rules are designed to protect the interests of shareholders and creditors by:

(a)  addressing the risk of these transactions leading to the company's insolvency

(b)  seeking to ensure fairness between the company's shareholders

(c)  requiring the company to disclose all material information.