Commonwealth Consolidated Acts

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Directly acquiring own shares

             (1)  A CCIV must not acquire shares (or units of shares) in itself except:

                     (a)  in buying back shares under section 1231C; or

                     (b)  under a court order; or

                     (c)  in circumstances covered by section 1230Q (about cross-investment).

             (2)  Section 259A does not apply to a CCIV.

             (3)  Subject to subsection (1), a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:

                     (a)  for not less than the consideration that would be payable if the share were acquired by another person; and

                     (b)  subject to terms and conditions that would not disadvantage other members.

Note:          A similar limitation applies to the corporate director of a retail CCIV: see section 1224P.

             (4)  If a CCIV contravenes subsection (1) or (3):

                     (a)  the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and

                     (b)  the CCIV is not guilty of an offence.

Civil liability

             (5)  Any person who is involved in a CCIV's contravention of subsection (1) or (3) contravenes this subsection.

Note 1:       This subsection is a civil penalty provision (see section 1317E).

Note 2:       Section 79 defines involved .

Fault-based offence

             (6)  A person commits an offence if they are involved in a CCIV's contravention of subsection (1) or (3) and the involvement is dishonest.

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