This Part states the rules to be followed by a company for reductions in share capital and for share buy-backs. The rules are designed to protect the interests of shareholders and creditors by:
(a) addressing the risk of these transactions leading to the company's insolvency
(b) seeking to ensure fairness between the company's shareholders
(c) requiring the company to disclose all material information.
Note: This Division does not apply to a CCIV: see subsection 1231A(5).