Commonwealth Consolidated Acts

CORPORATIONS ACT 2001 - SECT 259C

  (1)   The issue or transfer of shares (or units of shares) of a company to an entity it controls is void unless:

  (a)   the issue or transfer is to the entity as a personal representative; or

  (b)   the issue or transfer is to the entity as trustee and neither the company nor any entity it controls has a beneficial interest in the trust, other than a beneficial interest that satisfies these conditions:

  (i)   the interest arises from a security given for the purposes of a transaction entered into in the ordinary course of business in connection with providing finance; and

  (ii)   that transaction was not entered into with an associate of the company or an entity it controls; or

  (c)   the issue to the entity is made as a result of an offer to all the members of the company who hold shares of the class being issued and is made on a basis that does not discriminate unfairly, either directly or indirectly, in favour of the entity; or

  (d)   the transfer to the entity is by a wholly - owned subsidiary of a body corporate and the entity is also a wholly - owned subsidiary of that body corporate.

  (2)   ASIC may exempt a company from the operation of this section. The exemption:

  (a)   must be in writing; and

  (b)   may be granted subject to conditions.

  (3)   If paragraph   (1)(c) or (d) applies to an issue or transfer of shares (or units of shares), section   259D applies.