THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW

THE CORPORATIONS LAW   82 

The Corporations Law is as follows:...

CHAPTER 2H - SHARES

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History

Chapter 2H inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

PART 2H.5 - DIVIDENDS

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Part 2H.5 inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

SECTION 254V   WHEN DOES THE COMPANY INCUR A DEBT?  

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254V(1)  [Fixing amount or time]  

A company does not incur a debt merely by fixing the amount or time for payment of a dividend. The debt arises only when the time fixed for payment arrives and the decision to pay the dividend may be revoked at any time before then.

254V(2)  [Declaration of dividend]  

However, if the company has a constitution and it provides for the declaration of dividends, the company incurs a debt when the dividend is declared.

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S 254V inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

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