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.3 - FINANCIAL ASSISTANCE  

Note: This Part does not apply to a CCIV: see section 1231L .

SECTION 260D   CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 260A  

260D(1)   [ Effect of contravention]  

If a company provides financial assistance in contravention of section 260A:

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

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

260D(2)   [ Person involved in contravention]  

Any person who is involved in a company's contravention of section 260A contravenes this subsection.

Note 1: Subsection (2) is a civil penalty provision (see section 1317E).

Note 2: Section 79 defines involved .

260D(3)   [ Offence]  

A person commits an offence if they are involved in a company's contravention of section 260A and the involvement is dishonest.