Commonwealth Consolidated Acts

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CORPORATIONS ACT 2001 - SECT 1238C

When debts arise in relation to redeemable shares

             (1)  For the purposes of section 588G, if a CCIV takes action set out in column 1 of an item of the following table, it incurs a debt at the time set out in column 2 of the item.

 

When debts are incurred

Item

Column 1
Action of company

Column 2
When debt is incurred

1

redeeming redeemable shares that are redeemable only at its option

when the company exercises the option

2

issuing redeemable shares that are issued on terms that they are liable to be redeemed otherwise than only at its option

when the shares are issued

3

converting under section 1230C a share that is not a redeemable share into a share that is liable to be redeemed otherwise than only at its option

when the shares are converted

 

             (2)  This section has effect in relation to a CCIV in addition to the table set out in subsection 588G(1A).



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