Redemption must be permitted by constitution
(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
(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
(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
(4) An offence based on subsection (1), (2) or (3) is an offence of strict liability.
Consequences of contravention
(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.
(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.
(7) An application to the Court for an order under subsection (6) may be made by any of the following:
(b) the corporate director of the CCIV;
(c) a member, or group of members, of the CCIV.