Commonwealth Numbered Acts Commonwealth Numbered ActsThe following table sets out other provisions of this Act that are relevant to buy-backs.
| Other provisions relevant to buy-backs | ||
|---|---|---|
| provision | comment | |
| 1 | section 588G section 1317H | liability of directors on insolvency The directors may have to compensate the company if the company is, or becomes, insolvent when the company enters into the buy-back agreement. |
| 2 | section 1324 | injunctions to restrain contravention The Court may grant an injunction against conduct that constitutes, or would constitute, a contravention of this Act. |
| 4 | subsection 609(4) section 611 (item 19 of the table) | application of takeover provisions These sections deal with the application of Chapter 6 to buy-backs. |
| 5 | section 259A | consequences of failure to follow procedures—the company and the officers If a company fails to follow the procedure in this Division, the company contravenes this section and the officers who are involved in the contravention are liable to a civil penalty under Part 9.4B and may commit an offence. |
| 6 | section 256D | consequences of failure to follow procedures if reduction in share capital involved—the company and the officers If the buy-back involves a reduction in share capital and the company fails to follow the procedures in this Division, the company contravenes this section and the officers who are involved in the contravention are liable to a civil penalty under Part 9.4B and may commit an offence. |
| 7 | section 256D | consequences of failure to follow procedures if reduction in share capital involved—the transaction This section provides that a failure to follow the procedures for share capital reductions does not affect the validity of the buy-back transaction itself. |
| 8 | sections 1001A-1001D | continuous disclosure provisions A disclosing entity is required to disclose information about its securities that is material and not generally available. |
| 9 | Chapter 2E | benefits to related parties to be disclosed Under this Chapter, a financial benefit to a director or other related party may need to be approved at a general meeting before it is given. |
| 10 | section 125 | provisions in constitution This section deals with the way in which a company's constitution may restrict the exercise of the company's powers and the consequences of a failure to observe these restrictions. |
| 11 | sections 246B-246G | variation of class rights These sections deal with the variation of rights attached to a class of shares. This variation may be governed by the provisions of a company's constitution. |