Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 256A

                   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).