Commonwealth Numbered Acts
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CORPORATIONS ACT 2001 - SECT 257A
The company's power to buy back its own shares
A company may buy back its own shares if:
- the buy-back does not
materially prejudice the company's ability to pay its creditors; and
- the company follows the procedures laid down in this Division.
- Note 1: If a company has a constitution, it may include provisions in the
constitution that preclude the company buying back its own shares or impose
restrictions on the exercise of the company's power to buy back its own
Note 2: A company may buy-back redeemable preference shares and may do so on
terms other than the terms on which they could be redeemed. For the redemption
of redeemable preference shares, see sections 254J-254L.
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