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.
A CCIV may buy back its own shares, including redeemable shares and redeemable preference shares.
Note: Cross-investment between sub-funds is not a buy-back (see section 1230U ).
1231C(2)
However, if the buy-back involves a reduction of share capital, the reduction must be authorised by law.
Note: A share buy-back that involves a reduction of share capital will be authorised by law if, for example, the buy-back complies with subsection 1231A(1) .
1231C(3)
If a CCIV has entered into an agreement to buy back shares, all rights attaching to the shares are suspended. The suspension is lifted if the agreement is terminated.
1231C(4)
A CCIV must not dispose of shares it buys back. An agreement entered into in contravention of this subsection is void.
1231C(5)
Immediately after the registration of the transfer to the CCIV of the shares bought back, the shares are cancelled.
1231C(6)
Division 2 of Part 2J.1 does not apply to a CCIV.
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