Commonwealth Consolidated Acts

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A CCIV's power to buy back its own shares

             (1)  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).

             (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).

             (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.

             (4)  A CCIV must not dispose of shares it buys back. An agreement entered into in contravention of this subsection is void.

             (5)  Immediately after the registration of the transfer to the CCIV of the shares bought back, the shares are cancelled.

             (6)  Division 2 of Part 2J.1 does not apply to a CCIV.

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