Company Law Review Act 1998 (61 of 1998)

Schedule 5  

Corporations Law

17   After the heading to Part 2J.1 and before Division 1 of that Part

Insert:

256A Purpose

This Part states the rules to be followed by a company for reductions in share capital and for share buy-backs. The rules are designed to protect the interests of shareholders and creditors by:

(a) addressing the risk of these transactions leading to the company's insolvency

(b) seeking to ensure fairness between the company's shareholders

(c) requiring the company to disclose all material information.