Company Law Review Act 1998 (61 of 1998)

Schedule 5  

Corporations Law

22   Sections 258E and 258F

Repeal the sections, substitute:

258E Other share cancellations

Any reduction in share capital involved in:

(a) the redemption of redeemable preference shares out of the proceeds of a new issue of shares made for the purpose of the redemption (see section 254K); or

(b) a company's buying-back of its own shares under sections 257A to 257J if the shares are paid for out of share capital; or

(c) the cancellation of a share under subsection 667(3) or 1024E(7);

is authorised by this section.

258F Reductions because of lost capital

A company may reduce its share capital by cancelling any paid-up share capital that is lost or is not represented by available assets. This power does not apply if the company also cancels shares.