Commonwealth Consolidated Acts

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Acceptance of offer and transfer of shares to the company

Effect of acceptance of the buy-back offer on share rights

             (1)  Once a company 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.

Shares transferred to the company and cancelled

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

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

Note:          ASIC must be notified of the cancellation under section 254Y.

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