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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History

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

PART 2J.3 - FINANCIAL ASSISTANCE

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Part 2J.3 inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

SECTION 260A   FINANCIAL ASSISTANCE BY A COMPANY FOR ACQUIRING SHARES IN THE COMPANY OR A HOLDING COMPANY  

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260A(1)  [May assist in limited circumstances]  

A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if:

(a)  giving the assistance does not materially prejudice:

(i) the interests of the company or its shareholders; or

(ii) the company's ability to pay its creditors; or

(b)  the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or

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(c)  the assistance is exempted under section 260C.

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S 260A(1) amended by No 54 of 1998, Sch 5, Pt 2 (effective 1 July 1998).

S 260A(1) inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

260A(2)  [Timing of assistance]  

Without limiting subsection (1), financial assistance may:

(a)  be given before or after the acquisition of shares (or units of shares); and

(b)  take the form of paying a dividend.

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S 260A(2) inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

260A(3)  [Mode of acquisition]  

Subsection (1) extends to the acquisition of shares (or units of shares) by:

(a)  issue; or

(b)  transfer; or

(c)  any other means.

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History

S 260A(3) inserted by No 61 of 1998, Sch 1 (effective 1 July 1998).

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