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 2J - TRANSACTIONS AFFECTING SHARE CAPITAL

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

PART 2J.1 - SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS

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

Division 1 - Reductions in share capital not otherwise authorised by law

SECTION 256D   CONSEQUENCES OF FAILING TO COMPLY WITH SECTION 256B  

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256D(1)  [Compliance with sec 256B(1)]  

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The company must not make the reduction unless it complies with subsection 256B(1).

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S 256D(1) inserted by No 61 of 1998, Sch 1 and substituted by Sch 5 (effective 1 July 1998).

256D(2)  [Contravention]  

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If the company 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 company is not guilty of an offence.

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S 256D(2) inserted by No 61 of 1998, Sch 1 and substituted by Sch 5 (effective 1 July 1998).

256D(3)  [Person involved in contravention]  

Any person who is involved in a company's contravention of subsection (1) contravenes this subsection.

Note 1:

Subsection (3) is a civil penalty provision (see section 1317E).

Note 2:

Section 79 defines involved .

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S 256D(3) (Note 1) amended and (Note 2) inserted by No 156 of 1999, Sch 3, Pt 7 (effective 13 March 2000).

S 256D(3) inserted by No 61 of 1998, Sch 5 (effective 1 July 1998).

256D(4)  [Dishonest involvement]  

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A person commits an offence if they are involved in a company's contravention of section 256B and the involvement is dishonest.

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S 256D(4) inserted by No 156 of 1999, Sch 3, Pt 7 (effective 13 March 2000).

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