Corporations Act 2001
View history note
Hide history noteCCH note - modifying legislative instruments: The application of Pt 8B.4 is affected by the following legislative instruments that commenced or were amended on or after 1 January 2022: the ASIC Corporations (CCIV Auditors) Instrument 2024/668.
For other legislative instruments or class orders before 1 January 2022 that affect the application of Pt 8B.4, please consult the legislative instruments or class orders directly. These are reproduced in the regulatory-resources section of the company-law practice area in CCH iKnowConnect.
Subject to section 1230 , a CCIV ' s power under section 124 to issue shares includes the power to issue redeemable shares.
1230B(2)
All, some, or none of the shares in a CCIV may be redeemable shares.
Note: Subsections (1) and (2) reflect the fact that CCIVs may be open-ended investment vehicles.
1230B(3)
This section operates concurrently with section 254A .
1230B(4)
A redeemable share , in a CCIV, is a share (other than a preference share) in a CCIV that is liable to be redeemed at the option of one or more of the following: (a) the CCIV; (b) the member.
Option to redeem is not a preference
1230B(5)
In determining whether a share in a CCIV is a preference share, any rights attaching to shares in the CCIV with respect to redemption are to be disregarded.
Note: As a result, a CCIV may have ordinary shares that are redeemable as well as ordinary shares that are not redeemable. Preferences relating to redemption (including preferences relating to who has the option to redeem) are ignored in determining whether a share is a preference share.
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