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 260A   FINANCIAL ASSISTANCE BY A COMPANY FOR ACQUIRING SHARES IN THE COMPANY OR A HOLDING COMPANY  

260A(1)    
A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if:

(a)    giving the assistance does not materially prejudice:

(i) the interests of the company or its shareholders; or

(ii) the company ' s ability to pay its creditors; or

(b)    the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or

(c)    the assistance is exempted under section 260C .

Note: For the criminal liability of a person dishonestly involved in a contravention of this section, see subsection 260D(3) . Section 79 defines involved .

260A(2)    
Without limiting subsection (1) , financial assistance may:

(a)    be given before or after the acquisition of shares (or units of shares); and

(b)    take the form of paying a dividend.

260A(3)    
Subsection (1) extends to the acquisition of shares (or units of shares) by:

(a)    issue; or

(b)    transfer; or

(c)    any other means.