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.
Redemption must be permitted by constitution
1230G(1)
A retail CCIV must not redeem shares if the redemption is not permitted by the CCIV ' s constitution.
Redemption price must be in accordance with constitution
1230G(2)
A retail CCIV must not redeem shares if: (a) at the time of the redemption, section 1230H (about when a sub-fund is liquid) applies to the sub-fund to which the shares are referable; and (b) the redemption is not in accordance with the CCIV ' s constitution.
Redemption must comply with sections 1230J and 1230K if sub-fund is not liquid
1230G(3)
A retail CCIV must not redeem shares if: (a) at the time of the redemption, section 1230H (about when a sub-fund is liquid) does not apply to the sub-fund to which the shares are referable; and (b) any of the following apply:
(i) the CCIV has not offered members an opportunity to redeem shares under section 1230J ;
(ii) the redemption is not made in satisfaction of a redemption request made in response to the offer;
(iii) the redemption does not comply with section 1230K .
Strict liability offence
1230G(4)
An offence based on subsection (1) , (2) or (3) is an offence of strict liability.
Consequences of contravention
1230G(5)
If a CCIV redeems shares in contravention of this section, the contravention does not affect the validity of the redemption or of any contract or transaction connected with it.
Court orders
1230G(6)
If the Court is satisfied, on application under subsection (7) , that the consideration for a redemption of shares by a retail CCIV is not in accordance with this section, the Court may make any orders the Court considers appropriate.
1230G(7)
An application to the Court for an order under subsection (6) may be made by any of the following: (a) ASIC; (b) the corporate director of the CCIV; (c) a member, or group of members, of the CCIV.
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