Corporations Act 2001
CHAPTER 8B - CORPORATE COLLECTIVE INVESTMENT VEHICLES
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Hide history notePART 8B.4 - CORPORATE FINANCE, FINANCIAL REPORTING AND SUSTAINABILITY REPORTING FOR CCIVs
CCH note - modifying legislative instruments: The application of Pt 8B.4 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (CCIV Auditors) Instrument 2024/668.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 8B.4, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
Division 2 - Transactions affecting share capital
Subdivision A - Reductions in share capital and share buy-backs
SECTION 1231B CONSEQUENCES OF MAKING AN UNAUTHORISED REDUCTION
1231B(1)
A CCIV must not make a reduction in share capital if the reduction:
(a) does not comply with subsection 1231A(1) ; and
(b)
is not otherwise authorised by law.
1231B(2)
If a CCIV 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 CCIV does not commit an offence.
Fault-based offence
1231B(3)
A person commits an offence if the person is involved in a CCIV
'
s contravention of subsection
(1)
and the involvement is dishonest.
Civil liability
1231B(4)
A person who is involved in a CCIV
'
s contravention of subsection
(1)
contravenes this subsection.
Note 1: This subsection is a civil penalty provision (see section 1317E ).
Note 2: Section 79 defines involved .
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