Corporations Act 2001
Note: This Chapter is modified for CCIVs: see Division 2 of Part 8B.4 .
View history note
Hide history noteNote: This Division does not apply to a CCIV: see subsection 1231C(6) .
The following table sets out other provisions of this Act that are relevant to buy-backs.
| Other provisions relevant to buy-backs | ||
| provision | comment | |
| 1 | section 588G | liability of directors on insolvency |
| section 1317H | The directors may have to compensate the company if the company is, or becomes, insolvent when the company enters into the buy-back agreement. | |
| 2 | section 1324 | injunctions to restrain contravention |
| The Court may grant an injunction against conduct that constitutes, or would constitute, a contravention of this Act. | ||
| [ CCH Note: There is no item 3 in the table to s 257J. ] | ||
| 4 | subsection 609(4) | application of takeover provisions |
| section 611 (item 19 of the table) | These sections deal with the application of Chapter 6 to buy-backs. | |
| 5 | section 259A | consequences of failure to follow procedures - the company and the officers |
| If a company fails to follow the procedure in this Division, the company contravenes this section and the officers who are involved in the contravention are liable to a civil penalty under Part 9.4B and may commit an offence. | ||
| 6 | section 256D | consequences of failure to follow procedures if reduction in share capital involved - the company and the officers |
| If the buy-back involves a reduction in share capital and the company fails to follow the procedures in this Division, the company contravenes this section and the officers who are involved in the contravention are liable to a civil penalty under Part 9.4B and may commit an offence. | ||
| 7 | section 256D | consequences of failure to follow procedures if reduction in share capital involved - the transaction |
| This section provides that a failure to follow the procedures for share capital reductions does not affect the validity of the buy-back transaction itself. | ||
| 8 | Chapter 6CA | continuous disclosure provisions |
| Under this Chapter a disclosing entity is required to disclose information about its securities that is material and not generally available. | ||
| 9 | Chapter 2E | benefits to related parties to be disclosed |
| Under this Chapter, a financial benefit to a director or other related party may need to be approved at a general meeting before it is given. | ||
| 10 | section 125 | provisions in constitution |
| This section deals with the way in which a company's constitution may restrict the exercise of the company's powers and the consequences of a failure to observe these restrictions. | ||
| 11 | sections 246B-246G | variation of class rights |
| These sections deal with the variation of rights attached to a class of shares. This variation may be governed by the provisions of a company's constitution. |
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
