THE CORPORATIONS LAW

CHAPTER 2J - TRANSACTIONS AFFECTING SHARE CAPITAL

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

Division 2 - Share buy-backs

SECTION 257H   ACCEPTANCE OF OFFER AND TRANSFER OF SHARES TO THE COMPANY  

257H(1)  Effect of acceptance of the buy-back offer on share rights.  

Once a company has entered into an agreement to buy back shares, all rights attaching to the shares are suspended. The suspension is lifted if the agreement is terminated.

257H(2)  Shares transferred to the company and cancelled.  

A company must not deal in shares it buys back. An agreement entered into in contravention of this subsection is void.

257H(3)  [Cancellation on transfer back]  

Immediately after the registration of the transfer to the company of the shares bought back, the shares are cancelled.

Note:

ASIC must be notified of the cancellation under section 254Y.