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 does not apply to a CCIV: see section 1231L .
A company may financially assist a person to acquire shares (or units of shares) in the company or a holding company of the company only if: (a) giving the assistance does not materially prejudice:
(i) the interests of the company or its shareholders; or
(b) the assistance is approved by shareholders under section 260B (that section also requires advance notice to ASIC); or (c) the assistance is exempted under section 260C .
(ii) the company ' s ability to pay its creditors; or
Note: For the criminal liability of a person dishonestly involved in a contravention of this section, see subsection 260D(3) . Section 79 defines involved .
[ CCH Note: S 260A(1) will be amended by No 69 of 2020, s 3, Sch 1[589], by substituting " the Registrar " for " ASIC " in para (b) (effective 1 July 2026 or a day or days to be fixed by Proclamation).]
[ CCH Note: Act No 180 of 2012, s 3, Sch 7[1] contained the following application provision (which was effective 11 December 2012):
Application of amendments made by this Act
The amendments made by this Act apply in relation to an act or omission by a body corporate occurring on or after the day this Act commences.]
260A(2)
Without limiting subsection (1) , financial assistance may: (a) be given before or after the acquisition of shares (or units of shares); and (b) take the form of paying a dividend.
260A(3)
Subsection (1) extends to the acquisition of shares (or units of shares) by: (a) issue; or (b) transfer; or (c) any other means.
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.
