CORPORATIONS ACT 2001 - SECT 1231J Directly acquiring own shares

CORPORATIONS ACT 2001 - SECT 1231J

  (1)   A CCIV must not acquire shares (or units of shares) in itself except:

  (a)   in buying back shares under section   1231C; or

  (b)   under a court order; or

  (c)   in circumstances covered by section   1230Q (about cross - investment).

  (2)   Section   259A does not apply to a CCIV.

  (3)   Subject to subsection   (1), a retail CCIV may acquire and hold a share in the CCIV, but it must only do so:

  (a)   for not less than the consideration that would be payable if the share were acquired by another person; and

  (b)   subject to terms and conditions that would not disadvantage other members.

Note:   A similar limitation applies to the corporate director of a retail CCIV: see section   1224P.

  (4)   If a CCIV contravenes subsection   (1) or (3):

  (a)   the contravention does not affect the validity of the acquisition or security or of any contract or transaction connected with it; and

  (b)   the CCIV is not guilty of an offence.

Civil liability

  (5)   Any person who is involved in a CCIV's contravention of subsection   (1) or (3) contravenes this subsection.

Note 1:   This subsection is a civil penalty provision (see section   1317E).

Note 2:   Section   79 defines involved .

Fault - based offence

  (6)   A person commits an offence if they are involved in a CCIV's contravention of subsection   (1) or (3) and the involvement is dishonest.