Corporations Act 2001

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL  

Note: This Chapter is modified for CCIVs: see Division 2 of Part 8B.4 .

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

Division 1 - Reductions in share capital not otherwise authorised by law  

Note: This Division does not apply to a CCIV: see subsection 1231A(5) .

SECTION 256D   CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 256B  

256D(1)    
The company must not make the reduction unless it complies with subsection 256B(1) .

256D(2)    
If the company contravenes subsection (1):

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

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

256D(3)    
Any person who is involved in a company ' s contravention of subsection (1) contravenes this subsection.

Note 1: Subsection (3) is a civil penalty provision (see section 1317E ).

Note 2: Section 79 defines involved .

256D(4)    

A person commits an offence if they are involved in a company ' s contravention of subsection (1) and the involvement is dishonest.