Corporations Act 2001
Note: This Chapter is modified for CCIVs: see Division 2 of Part 8B.4 .
View history note
Hide history noteNote: This Part applies to a CCIV with modifications: see sections 1231J and 1231K .
The issue or transfer of shares (or units of shares) of a company to an entity it controls is void unless:
(a) the issue or transfer is to the entity as a personal representative; or
(b) the issue or transfer is to the entity as trustee and neither the company nor any entity it controls has a beneficial interest in the trust, other than a beneficial interest that satisfies these conditions:
(i) the interest arises from a security given for the purposes of a transaction entered into in the ordinary course of business in connection with providing finance; and
(ii) that transaction was not entered into with an associate of the company or an entity it controls; or
(c) the issue to the entity is made as a result of an offer to all the members of the company who hold shares of the class being issued and is made on a basis that does not discriminate unfairly, either directly or indirectly, in favour of the entity; or
(d) the transfer to the entity is by a wholly-owned subsidiary of a body corporate and the entity is also a wholly-owned subsidiary of that body corporate. 259C(2) [ ASIC may exempt]
ASIC may exempt a company from the operation of this section. The exemption:
(a) must be in writing; and
(b) may be granted subject to conditions. 259C(3) [ Cease to hold or control]
If paragraph (1)(c) or (d) applies to an issue or transfer of shares (or units of shares), section 259D applies.
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