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.1 - SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS  

Division 2 - Share buy-backs  

Note: This Division does not apply to a CCIV: see subsection 1231C(6) .

SECTION 257H   ACCEPTANCE OF OFFER AND TRANSFER OF SHARES TO THE COMPANY  
Effect of acceptance of the buy-back offer on share rights

257H(1)    
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.

Shares transferred to the company and cancelled

257H(2)    

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

257H(3)    
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 .