THE CORPORATIONS LAW
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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Hide history notePART 2J.1 - SHARE CAPITAL REDUCTIONS AND SHARE BUY-BACKS
Division 3 - Other share capital reductions
SECTION 258B RIGHT TO OCCUPY OR USE REAL PROPERTY 258B(1) (Shareholder right to occupy or use) If a company has a constitution, under it the company may grant to a shareholder, as a shareholder, a right to occupy or use real property that the company owns or holds under lease, whether the right is a lease or licence or a contractual right.Note:
Before the introduction of strata or unit titles systems, rights to occupy real property were sometimes based on a holding of shares in a company. 258B(2) (Transfer of interest in land) A company may transfer to a person an interest in land in exchange for, or in satisfaction of, a right to occupy or use the land of the kind referred to in subsection (1).Example:
A person has a right to occupy an apartment in a block of units because they hold shares in a company. As part of converting the block of units to strata title, the person surrenders the shares in return for a transfer of strata title over the apartment. The capital reduction involved in the transfer is authorised under this subsection.
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